
Cerence (CRNC) Stock Forecast & Price Target
Cerence (CRNC) Analyst Ratings
Bulls say
Cerence Inc demonstrates a positive outlook primarily due to a significant increase in deferred revenue, which is expected to contribute to stronger future growth in this area. Additionally, professional services margins improved to 32.7%, exceeding previous estimates, while the company's revenue for the quarter was $50.9 million, surpassing both internal and market expectations despite year-over-year declines. The upward trajectory in earnings per share (EPS) is anticipated, with projections indicating more than double the year-over-year increase in FY27, driven by enhanced revenue from Connected Services and improved organizational focus on sales and AI deals.
Bears say
Cerence Inc. faces a negative outlook primarily due to declining gross margins in its Connected Services segment, projected to remain flat at approximately 47% through the first half of FY25, a significant decrease from earlier expectations. Additionally, revenue estimates have been revised downward for 2024, exacerbating concerns about potential decreases in the company's enterprise value-to-sales (EV/S) multiple, which may fall below historical averages. The overall risk of a global recession and a possible decline in automobile sales could further impact consumer behavior, leading to deferred purchases or a shift towards lower-end vehicles lacking advanced AI features, thereby diminishing potential revenue streams.
This aggregate rating is based on analysts' research of Cerence and is not a guaranteed prediction by Public.com or investment advice.
Cerence (CRNC) Analyst Forecast & Price Prediction
Start investing in Cerence (CRNC)
Order type
Buy in
Order amount
Est. shares
0 shares