Nuance Communications Inc. (NUAN) Gets A Market Outperform Rating

Analysts at Avondale Partners LLC have given Nuance Communications Inc. (NASDAQ: NUAN) a Market Outperform rating as it expects the stock to gain at least 5%-10% more than the market over the next 6 to 18 months.

Nuance Communications Inc. has recently announced the acquisition of UK based SpinVox for $102.5 million in cash and stock. Analysts at Avondale believe that the acquisition has come at a relatively attractive price for Nuance Communication Inc. given the potential for synergies.

SpinVox provides voicemail-to-text services. Analysts believe that voicemail-to-text is an emerging service and could have room for substantial upside over the coming years. Nuance Communication Inc. paid $66 million in cash and $36.5 million in stock for the acquisition.