NICE stock price target lowered to $130 from $150 at DA Davidson

Investing.com - DA Davidson has lowered its price target on NICE Systems Ltd (NASDAQ:NICE) to $130.00 from $150.00 while maintaining a Neutral rating on the stock. NICE is currently trading at $109.46, having hit a new 52-week low, with InvestingPro analysis indicating the stock is significantly undervalued compared to its Fair Value.

The price target reduction follows NICE’s Capital Markets Day event where the company reached a new 52-week low. During the event, NICE presented its perspective on emerging opportunities in customer experience with AI, expansion beyond contact centers, and long-term growth drivers.

NICE management introduced guidance for 2026 and added financial targets for 2028, projecting total revenue growth to reaccelerate to 12%-14% by 2028 (approximately 11% excluding Cognigy).

The company also highlighted plans for approximately $160 million in incremental investments over the next year to achieve these financial goals.

DA Davidson’s new price target of $130 represents 12 times the firm’s projected 2026 free cash flow for NICE Systems. The stock currently trades at a P/E ratio of 12.38 and a notably low PEG ratio of 0.41, suggesting it may be undervalued relative to growth prospects. InvestingPro data reveals additional insights with 10+ more ProTips and comprehensive analysis available in the Pro Research Report.

In other recent news, NICE Systems has seen several adjustments to its stock price targets by major financial firms. Cantor Fitzgerald lowered its price target for NICE Systems to $133, citing the company’s strategy to ramp up investments in AI opportunities, which is expected to impact margins. Similarly, Morgan Stanley adjusted its price target to $160, maintaining an Overweight rating but expressing concerns over the costs associated with AI-driven growth initiatives. Jefferies also maintained its Hold rating with a $136 price target, noting margin concerns despite growth prospects in AI. RBC Capital lowered its price target to $175 after attending NICE’s Capital Markets Day, while keeping an Outperform rating. In addition to these financial updates, NICE Systems announced the appointment of Arun Chandra as Chief Operating Officer, effective December 1, 2025. Chandra, formerly of The Walt Disney Company, will oversee the Global Customer Operations division. These developments reflect NICE Systems’ ongoing focus on expanding its AI capabilities and enhancing customer experience operations.

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