NUAN

Nuance Communications Inc

TMT, Healthcare


Presented:01/27/2020
Price:$19.39
Cap:$5.51B
Current Price:$55.99
Cap:$17.88B

Presented

Date01/27/2020
Price$19.39
Market Cap$5.51B
Ent Value$5.96B
P/E Ratio50.95x
Book Value$7.54
Div Yield0%
Shares O/S284.18M
Ave Daily Vol2,817,907
Short Int3.97%

Current

Price$55.99
Market Cap$17.88B
Nuance Communications, Inc. is the pioneer in conversational AI innovations that bring intelligence to everyday work and life. It delivers solutions that understand, analyze and respond to people, amplifying human intelligence to increase productivity and security. The firm operates through the following segments: Healthcare, Enterprise, Automotive, and Other. The Healthcare segment improves clinical documentation, improve quality of care, minimize physician burnout, integrate quality measures and aid reimbursement. The Enterprise segment engages in multi-channel access to customer service from the businesses they interact with is driving demand for AI-powered omni-channel engagement solutions. The Automotive segment provides embedded and cloud-based automotive solutions. The other segment includes SRS and Devices businesses The company was founded in March 1992 and is headquartered in Burlington, MA.

Publicly traded companies mentioned herein: Automatic Data Processing Inc (ADP), Nuance Communications Inc (NUAN)

Highlights

The presenter is long shares of Nuance Communications Inc (NUAN), the leader in conversation-based AI products focused on the healthcare and enterprise end markets. After years of subpar leadership and flat topline performance, the company’s new leadership team has cleaned up its operations and refocused the business on its two core segments going forward. Between reacceleration in existing business lines and optionality around the new Ambient Clinical Intelligence (ACI) product, he believes NUAN’s revenue is at an inflection point which will see growth move from flat in FY2020 (FYE September 30, 2020) to the LDD % range in FY2023. He therefore expects NUAN’s share price to appreciate from ~$19.50 to ~$26 (~5x his FY2021 revenue estimate, ~18x his FY2021 EBITDA estimate) by the end of 2020. 

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