NICE Systems stock holds steady as JMP reiterates $300 price target

Investing.com - JMP Securities has reiterated its Market Outperform rating and $300 price target on {{16733|{{16733|NICE}} Systems Ltd}} (NASDAQ:NICE) following the company’s mixed second-quarter results for 2025. The stock, currently trading near its 52-week low, appears undervalued according to InvestingPro analysis, which identifies multiple positive indicators for the company.

NICE reported non-GAAP earnings per share of $3.01, slightly above the consensus estimate of $2.99, while revenue reached $727 million, exceeding analyst expectations of $713 million and representing a 9% year-over-year increase.

The company’s AI annual recurring revenue (ARR) grew to $238 million, up 42% year-over-year, accelerating from 39% growth in the previous quarter. Cloud revenue reached $541 million, up 12% year-over-year, consistent with the growth rate from the prior quarter.

NICE’s non-GAAP operating margin came in at 30.2%, below the consensus estimate of 31.2%, while free cash flow was reported at $39 million, significantly lower than the expected $167 million.

The company attributed the cash flow shortfall to "a non-recurring tax expense in the quarter and timing of some large anticipated customer collections which shifted to receipt a few days post quarter-end."

In other recent news, NICE Systems Ltd reported second-quarter revenue of $726.7 million, surpassing analyst expectations of $713.2 million. The company’s cloud revenue grew by 12.3% year-over-year, while AI and self-service revenue saw a significant 42% increase. Barclays noted these strong fundamentals but lowered its price target to $200, citing sector multiple compression. Similarly, Morgan Stanley reduced its price target to $193, highlighting a delay in the company’s growth trajectory, though it maintained an optimistic view of NICE’s positioning in AI and CCaaS. DA Davidson also adjusted its price target to $150 due to churn in the LiveVox segment, despite NICE’s revenue exceeding expectations. Northland, on the other hand, reiterated its Outperform rating with a $250 price target following the company’s strong performance. Additionally, NICE expanded its partnership with Salesforce to enhance AI-driven customer experience integration, furthering their collaboration on customer-managed channels and workforce engagement management.

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