Craig-Hallum awaits evidence of AI traction following Cerence’s solid quarter

Craig-Hallum says that Cerence’s (CRNC) solid quarter and mostly in-line guide has us awaiting evidence of AI traction in a new AI-driven world to get more bullish. Overall, shares are not expensive, the company is generating free cash flow, and the balance sheet is improved, Craig-Hallum argues. The firm awaits more evidence around the core product set and its position / opportunity in the new AI driven in-car experience. Craig-Hallum maintains a Hold rating on the shares with a price target of $10.