DA Davidson lowers NICE Systems stock price target to $150 on LiveVox churn

Published 14/08/2025, 21:18
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Investing.com - DA Davidson lowered its price target on NICE Systems Ltd (NASDAQ:NICE) to $150.00 from $195.00 on Thursday, while maintaining a Neutral rating on the stock. The stock, currently trading near its 52-week low, shows strong fundamentals with a "GREAT" financial health score according to InvestingPro data.

The price target reduction follows NICE Systems’ second-quarter 2025 financial results, which showed revenue ahead of expectations. With a solid revenue growth of 12.6% and a P/E ratio of 18.6, the company demonstrates strong market performance. This outperformance was driven by approximately $13 million in product revenue that was pulled forward from what was previously projected for the third quarter of 2025.

DA Davidson noted that positive new enterprise deal activity and strong AI & self-service adoption during the quarter were counterbalanced by customer churn at LiveVox, creating mixed results for the company.

Despite the unexpected LiveVox customer losses, NICE Systems’ management reiterated its 2025 revenue guidance and raised its earnings per share outlook. The current guidance excludes contributions from the pending acquisition of Cognigy.

The new $150 price target represents a multiple of 10 times the company’s projected 2026 free cash flow, according to DA Davidson’s analysis.

In other recent news, NICE Systems reported significant developments that could impact its future trajectory. The company announced the acquisition of Cognigy, a private conversational AI and automation provider, for $955 million, marking one of Europe’s largest AI acquisitions. This transaction is anticipated to close in the fourth quarter of 2025. Following this announcement, Citizens JMP reiterated its Market Outperform rating on NICE, maintaining a $300 price target. In contrast, DA Davidson initiated coverage with a Neutral rating and a $195 price target.

Additionally, NICE Systems expanded its partnership with Salesforce to enhance AI-driven customer experience integration. This collaboration aims to improve the integration between NICE CXone Mpower and Salesforce Service Cloud. Furthermore, NICE and RingCentral renewed their partnership, focusing on the continued marketing and sales of their AI-powered communication solutions. Meanwhile, Morgan Stanley adjusted its price target for NICE to $193, citing a delay in growth acceleration, although it maintained an Overweight rating on the stock.

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