Cerence price target raised to $40 from $30 at Needham

Needham analyst Rajvindra Gill raised the firm’s price target on Cerence to $40 from $30 and keeps a Buy rating on the shares after its Q4 results and based on attending the company’s Analyst Day. FY23 represents the trough but FY24 can see a significant rebound for Cerence, the analyst tells investors in a research note. Cerence appears to be rectifying past issues associated with previous management – including reducing fixed contracts and tempering expectations for new markets – while focusing on core automotive growth, Gill adds.