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Investing.com - JMP Securities has reiterated its Market Outperform rating and $300.00 price target on NICE Systems Ltd (NASDAQ:NICE), highlighting the company’s expanding AI capabilities. According to InvestingPro analysis, NICE demonstrates strong financial health with a "GREAT" overall rating and impressive gross margins of 67%.
The firm noted that NICE’s AI business grew 42% to $238 million in the most recent quarter and expects further growth from the acquisition of Cognigy, which is scheduled to close in the fourth quarter of 2024. This growth complements NICE’s overall revenue increase of 11.4% in the last twelve months, while maintaining a conservative debt-to-equity ratio of 0.14.
JMP projects Cognigy will exit 2025 with an estimated annual recurring revenue (ARR) of $47 million and reach over $85 million ARR by 2026, strengthening NICE’s position in the AI-powered customer experience market.
Under new CEO Scott Russell, NICE has become more partner-friendly, announcing collaborations with RingCentral in August 2025, along with partnerships with Salesforce, ServiceNow, and Snowflake announced between May and June 2025.
JMP also views NICE as an attractive acquisition candidate, referencing the Verint deal, while trading at what the firm considers a reasonable valuation of 2.4 times estimated 2026 revenue and 10 times enterprise value to estimated 2026 free cash flow. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional ProTips available for subscribers, including insights on the company’s cash position and earnings potential.
In other recent news, NICE Systems reported mixed second-quarter results for 2025, with non-GAAP earnings per share of $3.01, slightly above the consensus estimate of $2.99. The company’s revenue reached $727 million, surpassing analyst expectations of $713 million and marking a 9% year-over-year increase. Despite these strong results, Barclays lowered its price target for NICE to $200 from $226, citing sector multiple compression but maintaining an Overweight rating. Meanwhile, JMP Securities reiterated its Market Outperform rating with a $300 price target, and Northland also maintained its Outperform rating, highlighting the company’s robust cloud and AI/self-service revenue growth. DA Davidson adjusted its price target to $150 from $195, attributing the change to LiveVox churn, despite the company’s revenue exceeding expectations due to accelerated product revenue. Morgan Stanley also revised its price target to $193 from $202, maintaining an Overweight rating but noting a delay in the company’s growth trajectory. The firm’s optimism remains centered on NICE’s competitive positioning in AI and Contact Center as a Service (CCaaS). These developments reflect a range of perspectives on NICE Systems’ performance and future potential.
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