RBC Capital analyst Rishi Jaluria reiterated a Buy rating on NICE Ltd. (NASDAQ:NICE) on January 13, setting a price target of $175. Earlier, on January 9, William Blair analyst Arjun Bhatia also maintained a Buy rating for the stock.
Arjun Bhatia from William Blair stated that he remains positive on the stock despite management's expectation of lower gross margins in fiscal 2026. He attributed the anticipated margin reduction of about 200 basis points to the company's strategic investments in cloud and AI capabilities.
The analyst also mentioned NICE Ltd.'s recent acquisition of Cognigy. He noted that the acquisition is expected to lead to lower interest income due to the cash used in the purchase.
Despite these near-term challenges, the firm anticipates that the strategic investments in AI and cloud will yield benefits over time. Arjun Bhatia expressed confidence in the company's fundamental story and disciplined approach.
NICE Ltd. provides AI-powered cloud platforms for digital business solutions globally. Its offerings include CXone for customer experience, the Enlighten AI engine, and smart self-service solutions.