Oppenheimer Comments On Attractive Entry Point On Nuance Communications

In a report published by Oppenheimer, Nuance Communications (NASDAQ: NUAN) has a compelling valuation and an attractive entry point.

Oppenheimer said that NUAN's weakness (down 24%) since early Feb. could be attributed to a disappointing F1Q11 and recent jittery markets. “We've revisited our thesis and undertaken a sanity check making sure we're not missing anything. We believe the recent weakness is overdone and our thesis remains intact. If you believe in NUAN's speech recognition strategy for a number of verticals (Healthcare, Mobile/Automotive, Enterprise), then 12x our FY12E EPS is an attractive entry point for this low/mid-teens organic grower. With no big acquisitions in sight and an improving convergence of net income and cash flow, we believe this "one of a kind animal" sees no competitive pressure from GOOG. Reiterate Outperform.”

Nuance Communications closed yesterday at $17.57.