Why Nuance Communications (NUAN) Stock Continues To Rise Today

NEW YORK (TheStreet) -- Nuance Communications (NUAN) shares continue to rally on Tuesday, up 2.2% to $19.18 in trading, following yesterday's news that the company was entering into acquisition talks.

There were reports Monday that the speech recognition company was in sales talks with private equity funds and Samsung Electronics  (SSNLF).

The company boasts clients such as Apple (AAPL) and Nintendo (NTDOY) and recorded $1.86 billion in revenue during the last fiscal year. Shares are up 23% since the start of the year.

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TheStreet Ratings team rates NUANCE COMMUNICATIONS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NUANCE COMMUNICATIONS INC (NUAN) a HOLD. 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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