Is NICE Ltd. (NICE) One of the Best Affordable Growth Stocks to Buy Now?

On February 20, DA Davidson lowered its price target on Nice Ltd (NASDAQ:NICE) to $125 from $130 while reiterating a Neutral rating.

The Neutral stance follows the company’s solid fourth-quarter and full-year 2025 results, which exceeded expectations. Total revenue in the quarter was up 9% to $786.5 million, driven by a 14% increase in cloud revenue to $608.3 million. Operating income was up to $243.8 million, an increase of 7%. Diluted earnings per share also increased 7% to $3.24. Full-year revenue was up 8% to $2.945 billion, while diluted EPS increased 11% to $12.30 a share.

The company began 2026 with strong bookings momentum, expanding its backlog and accelerating international growth. Chief Executive Officer Scott Russell emphasized that artificial intelligence is broadening market opportunities beyond contact centers and that the company aims to capitalize on the ongoing market shift.

Amid the solid financial results, DA Davidson has touted the company’s push on AI innovation and the expanding opportunity to monetize the 60% of on-premises seats.

NICE Ltd. (NASDAQ:NICE) is a global technology company providing AI-powered cloud platforms for customer engagement (CX), financial crime compliance, and digital evidence management. Its solutions, including NICE CXone, enable organizations to automate customer service, improve workforce engagement, and detect financial fraud.

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.

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