Needham analyst Nick Doyle maintained a Buy rating on Cerence (CRNC – Research Report) today and set a price target of $16.00.
Nick Doyle has given his Buy rating due to a combination of factors including Cerence’s solid performance and maintained outlook for FY25, despite potential challenges from tariff uncertainties. The company is positioned to benefit as automakers seek cost-effective solutions, given its lower exposure to the US market.
Additionally, the progress in Connected Services during the second quarter of FY25 was notable enough for Doyle to modestly increase estimates, while maintaining overall topline projections through FY27. Adjustments were made with Professional Services estimates slightly reduced due to efficiency trends, while License and Connected Services estimates were increased due to strong demand for LLM-based solutions. Doyle sees potential upside in both License and Connected Services, but remains cautious with estimates amid ongoing tariff uncertainties.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRNC in relation to earlier this year.