Nuance Communications (NASDAQ:NUAN) to be Led by Mobile, Healthcare

After attending the first annual analysts day of Nuance Communications (NASDAQ:NUAN), FBR came away with their take that the company will be led by Healthcare and Mobile segments.

FBR said, "Yesterday (Thursday) we attended Nuance's much anticipated inaugural analyst day in Boston. This half day event was primarily focused around the company's strategic initiatives for 2011 and digging deeper into the TAM and penetration rates for Nuance's core markets (healthcare, mobile, enterprise). As evidenced during its presentations throughout the day, it is clear that the healthcare and mobile verticals are green field market opportunities for Nuance over the coming years in our opinion. In addition to its strategic overview, management finally gave (drum roll please) its on-demand bookings number, which adds more visibility into the Nuance story in our opinion. To this point the company gave the Street a three year estimated value of on-demand contracts ($1.14 billion) heading into FY11 and is expecting 30%+ growth from a bookings perspective for the upcoming fiscal year; an impressive figure that was above our expectations. Equally important, Nuance also reiterated its strong cash flow outlook for the next year, which combined with a strong bookings number, should add more credibility to the name over the coming quarters in our opinion. In a nutshell we believe Nuance did a commendable job yesterday by allowing investors to see the massive strategic value and strong fundamental story that is evolving at the company."

FBR Capital maintains an "Outperform" rating on Nuance Communications, which closed Friday at $18.73, up $0.57, or 3.13 percent.