Morgan Stanley Downgrades PT on NICE Ltd. Stock from $202 to $193, Maintains Overweight Rating

NICE Ltd. (NASDAQ:NICE) is one of the 10 Best AI Software Stocks to Buy Now. On August 14, Morgan Stanley downgraded the price target on NICE Ltd. (NASDAQ:NICE) stock from $202 to $193, maintaining its Overweight rating.

Meta Marshall from Morgan Stanley lowered the price target on NICE after the company reported Q2 FY2025 results. The company posted revenue of around $726.7 million, surpassing estimates by $13.50 million and up 8% year-over-year. NICE’s cloud business soared over 12% from a year ago, contributing significantly to the total revenue. The AI and self-service ARR also recorded exceptional growth of 42% year-over-year, reaching $238 million.

Despite the downgrade in NICE’s price target, the analyst remains optimistic on the company’s future. Marshall continues to view the current valuation as ‘overly punitive on AI disruption risk.’ Moreover, the analyst also sees a favorable setup in the capital markets day planned for October 2025. NICE reiterated full-year 2025 revenue guidance to be in the range of $2.92 billion to $2.94 billion, indicating a 7% increase from a year ago. The company has increased its EPS outlook, which is expected to be in the range of $12.33 to $12.53, representing 12% growth from a year ago.

NICE Ltd. (NASDAQ:NICE) is an AI software provider, offering AI-powered cloud platforms for customer engagement, and financial crime and compliance.

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Disclosure: None. This article is originally published at Insider Monkey.