Citigroup maintains Buy rating for NICE, PT down to $211.

Citigroup maintains Buy rating for NICE, PT down to $211.

Citigroup Inc. (C) has maintained its Buy rating for NICE Ltd. (NASDAQ: NICE) while adjusting its price target to $211. This decision comes amidst NICE's strong Q1 2025 earnings report, which saw double-digit year-over-year (YoY) EPS growth and record operating cash flow. The update reflects Citigroup's ongoing evaluation of NICE's performance and growth prospects.

NICE's Q1 2025 financial results highlighted robust revenue growth, with total revenues increasing 6% YoY to $700.2 million. Gross profit rose to $468.1 million, while operating income and net income both increased by 22% YoY to $148.2 million and $129.3 million, respectively. Fully diluted earnings per share (EPS) jumped 26% YoY to $2.01, outperforming market expectations. Additionally, NICE announced a new $500 million share repurchase program.

The company's cloud revenue grew 12% YoY, driven by the adoption of AI-driven solutions. NICE's AI and self-service revenue surged 39% YoY, demonstrating the increasing demand for its CX AI cloud platform, CXone Mpower. The platform's ability to enable end-to-end automation has positioned NICE as a leader in the customer service sector.

Citigroup's analysts have praised NICE's strong financial performance and strategic focus on AI-driven solutions. They believe that NICE's growth trajectory remains favorable, supported by its industry-leading financial profile and strategic investments in AI technology. The adjusted price target reflects Citigroup's optimism about NICE's long-term growth potential and its ability to capitalize on market trends.

References:
[1] https://www.nasdaq.com/articles/citigroup-cut-200-it-jobs-china-enhance-risk-management
[2] https://seekingalpha.com/news/4448071-nice-q1-2025-earnings-preview
[3] https://finance.yahoo.com/news/nice-reports-12-over-cloud-093000881.html