Benzinga | Jul 7, 2021 10:34AM EDT

Raymond James Downgrades Cerence To Market Perform From Outperform As It Falls Short Of Analyst Price Target

* Raymond James analyst Brian Gesuale downgraded Cerence Inc (NASDAQ:CRNC) to Market Perform from Outperform after the share price dropped from the firm's initial $115 price target.

* The current share price was 8.1% above the price target.

* Gesuale is comfortable with FY21 estimates and sees an upside.

* However, expectations for growth above market, connected revenue, and prepaid license revenue estimates in FY22 have shifted from being conservative over the past 12-months to being more reflective or even slightly optimistic of reality, Gesuale's research note stated.

* Cerence will replace Adtalem Global Education Inc (NYSE:ATGE) in the S&P MidCap 400 on July 7 before the market open.

* Price action: CRNC shares traded lower by 4.60% at $118.60 in the market session on the last check Wednesday.