DA Davidson raises Nice Systems price target on CX market expansion

Published 20/06/2025, 11:58
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Investing.com - DA Davidson raised its price target on Nice Systems Ltd (NASDAQ:NICE) to $195 from $185 on Friday, while maintaining a Buy rating on the customer experience software provider. Currently trading at $165.33 with a market cap of $10.6 billion, Nice Systems has earned a "GREAT" financial health score according to InvestingPro analysis.

The price target increase follows DA Davidson’s attendance at Interactions 2025, which included an investor day where Nice Systems management reiterated its 2025 guidance and provided updates on the customer experience market. InvestingPro data shows the company is currently trading at attractive valuations relative to its growth potential, with analysts setting targets ranging from $161 to $300.

Nice Systems outlined growing opportunities to extend its value proposition beyond customer-facing operations into middle and back office functions, expanding its potential market reach.

The company announced enhanced strategic partnerships with AWS and Snowflake (NYSE:SNOW) during the event, focused on helping organizations implement artificial intelligence for customer experience use cases.

DA Davidson’s new $195 price target represents 14 times Nice Systems’ expected 2025 free cash flow, reflecting the firm’s confidence in the company’s market position and growth strategy.

In other recent news, NICE Systems Ltd has reported significant developments in its financial and strategic operations. The company announced $208 million in annual recurring revenue from AI in the first quarter of 2025, marking a 39% increase from the previous year. This growth is part of NICE’s pivot towards becoming an AI-driven platform, as highlighted by Cantor Fitzgerald and Morgan Stanley (NYSE:MS), which maintain their Neutral and Overweight ratings, respectively. Morgan Stanley specifically noted the company’s expanding monetization potential in middle and back-office workflows.

Additionally, NICE has expanded its strategic partnership with Amazon (NASDAQ:AMZN) Web Services to enhance AI-powered customer service tools. This collaboration aims to integrate AWS’s generative AI services across NICE’s CXone Mpower platform, focusing on simplifying AI agent creation and driving enterprise automation. NICE also introduced CXone Mpower Agents, a new AI solution designed to automate customer service workflows across all operational areas. This innovation allows businesses to deploy AI agents quickly, using NICE’s proprietary models to optimize workflows.

JMP Securities reiterated its Market Outperform rating, citing positive feedback from customers and partners regarding NICE’s strategic direction and partnerships. Large enterprises such as Walmart (NYSE:WMT) and Disney (NYSE:DIS) are reportedly expanding their use of NICE’s solutions. The company plans to update its financial metrics at an upcoming Capital Markets Day, providing further insights into its long-term outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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