Benzinga | Oct 6, 2021 09:27AM EDT

Why This Analyst Sees 28% Upside In Cerence?

* RBC Capital analyst Joseph Spak upgraded Cerence Inc (NASDAQ:CRNC) to Outperform from Sector Perform with a price target of $110, down from $112, implying a 28.24% upside.

* The selloff in the stock related to auto concerns and SaaS/software decline looks "overdone," Spak notes.

* Spak sees "little change" to the company's long-term investment story.

* Spak adds that the FY24 targets for Cerence may have some "potential for upside."

* Price Action: CRNC shares traded higher by 0.02% at $85.8 in the premarket session on the last check Wednesday.