JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Morgan Stanley has reduced its price target on NICE Systems Ltd (NASDAQ:NICE) to $193.00 from $202.00 while maintaining an Overweight rating on the stock. The stock, currently trading at $129.25, is near its 52-week low and appears undervalued according to InvestingPro analysis.
The firm cited delayed acceleration in the company’s growth trajectory, noting that while it remains optimistic about NICE’s competitive positioning in AI and Contact Center as a Service (CCaaS), top-line re-acceleration is not expected until 2026. Despite these concerns, NICE maintains robust financials with a PEG ratio of 0.68, suggesting attractive valuation relative to growth potential.
Morgan Stanley observed encouraging signs in NICE’s cloud growth, which showed stabilization and met expectations despite bearish concerns ahead of earnings. The company has reiterated its 12% cloud growth forecast for fiscal year 2025, aligning with its impressive trailing twelve-month revenue growth of 12.62%. InvestingPro data reveals the company maintains excellent financial health with an overall score of "GREAT."
The research firm highlighted positive developments in AI monetization, with AI and self-service Annual Recurring Revenue (ARR) accelerating quarter-over-quarter to $238 million, representing 42% year-over-year growth. Additionally, a previously announced APAC mega-deal has begun contributing to revenue, while an EMEA deal from Q1 2025 is expected to impact revenue starting in Q2 2026.
With NICE shares trading at levels comparable to March 2020 COVID lows, Morgan Stanley sees a favorable setup heading into the company’s upcoming October Capital Markets Day in New York, where NICE will provide updated medium-term financial targets and discuss opportunities related to its Cognigy acquisition. For deeper insights into NICE’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, NICE has announced a significant acquisition, agreeing to purchase Cognigy for approximately $955 million. This deal, described as Europe’s largest AI acquisition to date, is expected to close in the fourth quarter of 2025. The acquisition aims to enhance NICE’s CXone Mpower platform by integrating Cognigy’s AI capabilities to improve customer service delivery. Analyst firm Citizens JMP has reiterated its Market Outperform rating for NICE, maintaining a price target of $300 following this announcement. Additionally, DA Davidson has assumed coverage of NICE with a Neutral rating and a $195 price target.
Further developments include NICE expanding its strategic partnership with Salesforce to improve integration between NICE CXone Mpower and Salesforce Service Cloud. This expanded collaboration introduces new capabilities, such as customer-managed channels and workforce engagement features. Moreover, NICE and RingCentral have renewed their long-standing partnership, focusing on AI-powered communications through the RingCentral Contact Center. These recent developments underscore NICE’s ongoing efforts to enhance its technology offerings and strategic partnerships.
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