NICE Ltd.: Comprehensive Stock Price Forecast and Analysis
Nice Ltd., formerly known as NICE Systems Ltd., is an Israeli technology company specializing in customer relations management software (NICE CXone), artificial intelligence, and digital and workforce engagement management. The company serves various industries, including financial services, telecommunications, healthcare, retail, and more1. Nice Ltd. offers solutions for customer service automation, journey orchestration, agent assist, and compliance.
Nice Ltd Finance Performance
For the fiscal year ending June 30, 2024, NICE Ltd. reported the following financial performance. Revenue: $2.55 billion; Net Income: $396.16 million; Operating Income: $290 million; Earnings Per Share (EPS): $6.00; Market Cap: Approximately $12.17 billion
The company experienced a 26% year-over-year growth in cloud revenue and continued double-digit growth in profitability for Q2 2024. NICE Ltd. remains focused on strategic growth and innovation, particularly in cloud, analytics, and artificial intelligence.
Stock Price Performance
Nice Ltd.’s stock price has shown significant growth over the years. As of November 12, 2024, the stock price was $192.89. The stock has a 52-week range of $151.52 to $270.73. The company’s market cap is $12.061 billion.
Based on 11 Wall Street analysts offering 12 month price targets for NICE in the last 3 months. The average price target is $264.10 with a high forecast of $300.00 and a low forecast of $230.00. The average price target represents a 36.83% change from the last price of $193.01.
Investment Insight
This company demonstrates robust and growing Free Cash Flow, highlighting its financial strength. The Board of Directors is highly competent, managing the company with a conservative approach to ensure high returns for shareholders. Through share buybacks the company returns just under half of its Net Profit to shareholders. However, sustaining very high Net Profitability remains challenging, which impacts its overall investment rating.
Nice Ltd. Stock Forecast**
| MIN/MAX | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|
| MIN | 98.38 | 114.38 | 132.98 | 154.60 | 179.73 |
| MAX | 175.78 | 204.37 | 237.60 | 276.23 | 321.14 |
When to buy?
When evaluating the stock price against fixed-income instruments, it is deemed fairly valued, despite remaining significantly below its historical highs for the past three years. This suggests a potential for further price adjustments, allowing investors to patiently wait for a more attractive entry point. Alternatively, investors could opt to explore other companies for investment opportunities. If you already hold these stocks in your portfolio, it would be prudent to retain them and consider increasing your position during market corrections to capitalize on future gains.
Dividend Policy
Nice Ltd. does not currently pay dividends. The company focuses on reinvesting its earnings to drive growth and innovation.
Conclusion
NICE Ltd. continues to be a strong player in the technology sector, particularly in customer relations management, artificial intelligence, and digital workforce engagement management. The company’s solid financial performance and strategic focus on innovation and growth highlight its potential.
Although the stock price has fluctuated and remains below historical highs, the firm maintains robust free cash flow and prudent financial management. For investors, this may present a strategic opportunity to enter or increase their position, especially considering the potential for a rebound. While NICE Ltd. does not currently offer dividends, its reinvestment strategy aims to drive long-term growth and shareholder value.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.