NUAN

Nuance Communications Inc

TMT, Healthcare


Presented:05/29/2020
Price:$22.88
Cap:$6.44B
Current Price:$55.99
Cap:$17.88B

Presented

Date05/29/2020
Price$22.88
Market Cap$6.44B
Ent Value$6.10B
P/E Ratio43.72x
Book Value$3.97
Div Yield0%
Shares O/S281.27M
Ave Daily Vol3,855,608
Short Int3.89%

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), Microsoft Corp (MSFT), NCR Corp (NCR), Nuance Communications Inc (NUAN)

Highlights

The presenter is long shares of Nuance Communications Inc (NUAN), the speech recognition and conversational AI company that trades at ~$23 per share (~25x consensus FY2021 earnings— note, FY2021 ends September 30, 2021). He agrees with common bull theses that the underlying business is solving real and growing issues; is high quality with strong economic moats, lengthy contracts, high switching costs, and limited customer concentration; and has attractive opportunities to drive growth over the next 3 – 5 years. However, the most important aspect of his bullish outlook is Dragon Ambient eXperience (DAX), NUAN’s new evolution of its Dragon product. In his view, this is an underfollowed growth catalyst since its sell-side coverage is stale (i.e., mostly software analysts) and could cause the stock price to double or triple over a 2 – 3 year time horizon. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.