Nuance Communications Inc. (NUAN): Buy or Sell?

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OmniVision Technologies, Inc. (NASDAQ:OVTI) , whose shares are around $15.60, makes image sensors for computers and mobile devices. When the company reports earnings on Feb. 28 2013, OmniVision might provide better insight on the impact of weaker PC sales on its earnings. Apple is an important customer for the company too, which means that lighter iPhone sales in the quarters ahead could lead to lower revenue for OmniVision.

Conclusion

The current P/E of Nuance remains quite high. Despite a lower forward P/E, Nuance shares may remain at current levels, leaving little short-term upside for investors. In the last year, Nuance shares dropped to $20, only to bounce back to $25. This time could be different, because Nuance needs time to accelerate revenue growth in the mobile space to make up for its weaker healthcare business revenue.

The article Nuance: Buy or Sell? originally appeared on Fool.com and is written by Chris Lau.

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