Morgan Stanlet Reduced NICE Ltd. (NICE) PT From $160 Amid Valuation Reset

NICE Ltd. (NASDAQ:NICE) is among the 20 Best Investments in 2026.

NICE Ltd. (NASDAQ:NICE) is placed nineteenth on our list of best investments.

TheFly reported on February 20 that Morgan Stanley reduced its price target for NICE to $148 from $160 and kept an Overweight rating on the stock. The firm highlighted another quarter of stability in the company’s core cloud business, alongside continued acceleration in its backlog. According to Morgan Stanley, the present price already reflects a cautious assessment of potential threats from AI-related disruption, but any re-rating will depend on continued execution.

On February 19, NICE Ltd. (NASDAQ:NICE) released its fourth-quarter and full-year 2025 financial results, which demonstrated robust growth in both its cloud and artificial intelligence sectors. The report claims that cloud revenue surpassed earlier estimates by 8% from 2024 to $2.95 billion for the whole year and by 9% year over year to $786.5 million in Q4.

In addition, non-GAAP fully diluted EPS increased to $12.30 for the whole year, an 11% gain over 2024, and AI-powered solutions were extensively used in all major transactions. Strong operational profitability, continuous development in key cloud businesses, and a healthy balance sheet with $417 million in cash and no debt were all shown by the findings.

Looking ahead, NICE guided 2026, projecting full-year non-GAAP revenue of $3.17–$3.19 billion, an 8% increase over 2025, and non-GAAP fully diluted EPS in the range of $10.85–$11.05, supported by anticipated growth in cloud and AI-related offerings.

NICE Ltd. (NASDAQ:NICE) provides cloud and on-premise software solutions for customer experience, financial crime, and public safety. NICE specializes in analytics, AI, and automation to improve decision-making, security, and operational efficiency across industries.

While we acknowledge the potential of NICE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.

Disclosure: None. Follow Insider Monkey on Google News.