Shares of Nuance, which provides voice recognition solutions, dropped on Wednesday due to reports that Google (GOOGL) was developing a new speech recognition platform, the firm said in a note.
However, Google's new platform should have a limited impact on Nuance, Deutsche Bank said.
"The weakness in Nuance stock today was more a reaction to a tech giant creating its own platform, rather than a fundamental threat to Nuance's business," the firm added.
Deutsche Bank maintained its "buy" rating on the stock.
As of the market close today, 6.1 million shares of Nuance have traded, versus the company's 30-day average of 3.13 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: NUAN