Goldman Sachs raised Cerence’s price target to $11 from $10 while maintaining a ‘Neutral’ rating, according to TheFly.
- Cerence’s Q4 revenue came in at $60.6 million, topping estimates of $54.8 million.
- Its full-year revenue totaled $251.8 million, compared to an estimate of $246.38 million.
- The stock climbed back up to its 200-day moving average for the first time since November 3.
Cerence (CRNC) stock surged 40% on Thursday, after Goldman Sachs raised its target price on the back of better-than-expected fourth quarter results.
The stock climbed back up to its 200-day moving average (200-DMA) for the first time since November 3. Cerence also recorded its biggest intraday gain since January.
Results Beat Estimates
Cerence reported a strong finish to fiscal 2025, delivering fourth-quarter and full-year results that exceeded guidance. Fourth-quarter revenue came in at $60.6 million, topping estimates of $54.8 million, according to Stocktwits data. Net loss narrowed to $13.4 million from $20.4 million last year, and gross margin rose to 72.6% from 63.7%.
Its full-year revenue totaled $251.8 million, beating estimates of $246.38 million.
For fiscal year 2026, the company expects revenue between $300 million and $320 million, with net results ranging from a loss of $8.1 million to an income of $11.9 million, and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $50 million to $70 million.
Brokerage Upgrade
Goldman Sachs raised Cerence’s price target to $11 from $10 while maintaining a ‘Neutral’ rating, according to TheFly.
The firm noted that Cerence delivered a strong quarter, surpassing revenue and EBITDA expectations and providing FY26 guidance that benefited from a significant legal settlement.
The brokerage highlighted encouraging trends in core performance, including improved pricing per unit and an expected 8% increase in core business next year. However, backlog and penetration rates were largely unchanged, and Goldman said it is looking for more definitive signs of sustained core-business momentum, such as additional xUI program wins.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits flipped to ‘extremely bullish’ from ‘neutral’ a day earlier, accompanied by ‘extremely high’ message volumes.
A Stocktwits user expects the stock to head toward $16.
Year-to-date, CRNC shares have gained 35%.
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