Cerence CEO Resigns, Shares Down 14%
<p><a href='https://financialmodelingprep.com/financial-summary/CRNC'>Cerence Inc. (NASDAQ:CRNC) </a>shares were trading more than 14% lower Wednesday afternoon following the CEO resignation announcement. </p>
<p>According to the company’s announcement, Sanjay Dhawan has resigned as CEO of the company and Dr. Stefan Ortmanns has been promoted to President & CEO. </p>
<p>In the short term, analysts at Berenberg Bank see risk that the new CEO could use the current volatility in the share price as a chance to pull or lower management’s long-term financial targets in order to set a less ambitious bar. That said, the analysts are already modeling below management’s target numbers for 2024 and believe that the current valuation is baking in that risk. </p>
<p>Berenberg Bank estimates a 19% revenue CAGR (management’s target is 22%), around 37% EBITDA margins, and around 40% annual FCF growth through 2024.</p>

NASDAQ:CRNC