2023-10-16 09:17:16 ET
Morgan Stalney upgraded Nice ( NASDAQ: NICE ) to “overweight” and said that the Israel-based software provider is well positioned to capture enterprise demand for conversational artificial intelligence.
“We believe there will be meaningful competition and strategic activity to capture opportunity, but favor early positioning of NICE,” wrote Morgan Stanley analyst Meta Marshall.
Marshall added that contact center technology markets could grow at an 18% CAGR to $26 billion by 2027, largely as the market looks for more virtual agents.
“Competition would be severe, particularly for Conversational AI market, but CCaaS vendors still positioned well.”
However, the brokerage lowered price target on the stock to $220 from $225, citing macro headwinds.
Seeking Alpha and Wall Street analysts rate the stock as “buy” and above, while Seeking Alpha’s Quant rating considers a stock a “hold”.
NICE, which counts companies like Accenture and American Airlines as customers and has a market valuation of $9.86 billion, has lost nearly 17% so far this year.
More on NICE
- NICE Ltd.: Seeking Value In The AI Sector
- NICE beats Q2 top and bottom line estimates; initiates Q3 and raises FY23 outlook
- Seeking Alpha’s Quant Rating on NICE
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Israel's NICE 'well positioned' to capture conversational AI enterprise demand, says Morgan Stanley