Cerence Inc. (CRNC) has partnered with Pioneer Corp. to develop AI-powered products and services for improving driver and passenger experiences across the globe.
Cerence provides conversational AI to auto manufacturers and mobility original equipment manufacturers (OEMs). Pioneer provides in-car equipment and mobility services. Its solutions are deployed in over 10 million in-car systems every year.
The two partners will develop a hardware and software product that will offer an intuitive and intelligent experience to travelers while making their journey safer, smarter, and more comfortable.
Cerence CEO, Sanjay Dhawan said, “Advances in AI and connectivity have transformed the automotive cockpit as automakers prioritize an intuitive, natural in-car experience.”
Dhawan added, “Together with Pioneer, we will bring this experience to all drivers, combining Pioneer’s focus on quality with our agile approach to innovation to deliver an accessible product that can transform any car into an intelligent, personalized companion and bring drivers’ broader digital lives into the car.”
On May 11, Needham analyst Rajvindra Gill reiterated a Buy rating on the stock and a price target of $155 (29.4% upside potential).
Gill commented, “We believe Cerence is a market leader in voice AI, which represents an excellent opportunity for top-line expansion. Market leadership, the most comprehensive in-car and in-cloud solution for vehicle OEMs, good revenue visibility, the ability to layer ASPs, and a 5-year management plan to greatly improve operations after its spin-off from Nuance Communications, combine to make Cerence’s shares attractive.”
Based on 6 Buys and 2 Holds, consensus among analysts is a Strong Buy. The CRNC average analyst price target of $120.38 implies the stock is fully priced at current levels.
Shares have gained about 35% over the past month.