William Blair analyst Arjun Bhatia has maintained their bullish stance on NICE stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors that weigh both the current challenges and potential opportunities for NICE. Despite the disappointing cloud revenue results and guidance that came in below expectations, Bhatia sees the new CEO Scott Russell’s conservative guidance as a strategic move to set a realistic baseline, reflecting prudence and a response to the operational challenges related to larger deals and complex implementations.
Bhatia believes that NICE is undervalued at its current valuation and is well-positioned for future growth, especially with the increasing adoption of AI in contact centers. There is an expectation that if NICE can address its operational issues, the dynamics could shift positively, enhancing cloud revenue growth. The potential for margin expansion through operating expense leverage further supports the positive outlook, making the case for a Buy rating stronger despite current headwinds.
Bhatia covers the Technology sector, focusing on stocks such as Braze, Salesforce, and GoDaddy. According to TipRanks, Bhatia has an average return of 13.9% and a 56.23% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $226.00 price target.