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Technology Stocks : Nuance Communications, Inc.
NUAN 54.840.0%Aug 11 5:00 PM EST

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From: Jorgen Jensen6/19/2008 10:45:11 AM
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June 19, 2008 8:26 AM EDT

Citi maintains a 'Buy' rating on Nuance Communications (Nasdaq: NUAN), adds stock to Top Picks Live List.

Citi analyst says, "We are adding NUAN, one of our favorite small cap software names, to the CIR Top Picks Live list. Stock is down 23% since YTD '08 peak of $21.40 on 4/23 (vs. NASDAQ Comp. + 1%), while co. has met or exceeded guidance & Street consensus for 8 qtrs in a row...Nuance is the leading provider of speech-enabling software, with market share of 60%-90% in various segments. Yet, significant growth opportunities lie ahead, with penetration rates of only 5%-10%, and the company's major product lines expected to grow between 15%-40% per year. We estimate Nuance can grow at a CAGR of 28% for revs and 25% for PF EPS for next 3 years (thru FY10), significantly outpacing software industry growth of 7%-10%."
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