Cerence Inc. (NASDAQ:CRNC) share price dropped more than 20% on Monday following the company’s Q4 results, which raised concerns around New Connected Services growth after a 34% quarter-over-quarter decline. Analysts at Berenberg Bank think this significant decline in share prices is a good opportunity to buy the stock. The analysts advised investors to keep the following key point in mind:

(1) management has a track record of conservative guidance,

(2) Management reiterated 2024 targets, with $700 million revenue and 37% EBITDA margins,

(3) 2024 targets include $155 million from nascent New Connected Services/Apps and markets,

(4) The order backlog offers line of sight to a meaningful portion of targeted New Connected revenue.