What Analysts Are Saying About Cerence Stock

Ratings for Cerence CRNC were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts’ 12-month price targets are revealed, presenting an average target of $10.4, a high estimate of $16.00, and a low estimate of $8.00. A 7.14% drop is evident in the current average compared to the previous average price target of $11.20.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Cerence is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they ‘Maintain’, ‘Raise’ or ‘Lower’ their stance, it reflects their reaction to recent developments related to Cerence. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from ‘Outperform’ to ‘Underperform’. These ratings convey expectations for the relative performance of Cerence compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock’s future value. Comparing the current and prior price targets provides insight into how analysts’ expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock’s potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Cerence’s market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Cerence analyst ratings.

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Delving into Cerence’s Background

Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company’s revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.

Cerence’s Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

Revenue Growth: Cerence’s revenue growth over a period of 3M has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -63.21%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Cerence’s net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -47.72%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Cerence’s ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -18.55%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Cerence’s ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.68%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 2.24, Cerence faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company’s revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.