NEW YORK (TheStreet) -- Shares of Nuance are falling after Goldman Sachs downgraded the stock to Sell from Neutral, saying that the company is not a potential takeover target. Nuance develops software products based on its voice and language platform. WHAT'S NEW: In a leveraged buyout, Nuance would only have an internal rate of return of 1%, assuming cost cutting and margin improvement, Goldman analyst Greg Dunham wrote in a note to investors today. On the other hand, two other companies in the sector, CommVault and Informatica , would provide internal rates of returns of 20%, Dunham estimated. Meanwhile, Nuance's organic growth will be challenged going forward, partly due to weakness in the medical transcription market and competition it is facing in its mobile and consumer businesses, the analyst stated. Dunham expects the company's profits to come in below expectations in fiscal 2015, fiscal 2016, and fiscal 2017. He set an $11 price target on the shares. PRICE ACTION: In mid-morning trading, Nuance fell 4% to $13.50. Reporting by Larry Ramer.
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