NICE Ltd. Initiates Coverage with Neutral Rating and $195 Price Target Following Acquisition of AI Firm Cognigy

DA Davidson initiated coverage on NICE Ltd (NASDAQ:NICE) with a Neutral rating and a price target of $195, implying a 42% upside from the current price of $143.69. The firm's initiation came after NICE agreed to acquire Cognigy for $955 million. DA Davidson sees long-term benefits but believes the valuation is difficult to justify in the short term. NICE offers cybersecurity solutions, customer experience management, AI-driven analytics, and workforce engagement.

DA Davidson has initiated coverage on NICE Ltd (NASDAQ:NICE) with a Neutral rating and a price target of $195, representing a 42% upside from the current price of $143.69. The move comes following NICE's agreement to acquire Cognigy, a private conversational AI and automation provider, for $955 million [2].

DA Davidson sees long-term benefits in the acquisition, but believes the valuation is difficult to justify in the short term. The acquisition is a strategic step that could help NICE Ltd further its position in the AI space, particularly in customer service and automation [2]. However, the price represents more than 10% of the company's market cap, which DA Davidson considers high based on the company's current size [2].

NICE Ltd offers a variety of cybersecurity solutions, focusing on financial crime, as well as customer experience management, AI-driven analytics, and workforce engagement. The company's recent Q2 2025 financial results showed strong performance, with revenue ahead of expectations, driven by approximately $13 million in product revenue pulled forward from the third quarter of 2025 [1].

The company's AI and self-service revenue growth was a significant driver of its cloud business revenue, which increased by 12% year-over-year. International revenue also showed strong growth, with Asia Pacific and EMEA regions growing by 17% and 11%, respectively. The company's strategic partnerships with industry leaders like ServiceNow, AWS, and Snowflake aim to enhance integration capabilities and expand market reach [3].

Despite the positive developments, DA Davidson noted that customer churn at LiveVox created mixed results for the company. However, management reiterated its 2025 revenue guidance and raised its earnings per share outlook. The current guidance excludes contributions from the pending acquisition of Cognigy [1].

References:
[1] https://www.investing.com/news/analyst-ratings/da-davidson-lowers-nice-systems-stock-price-target-to-150-on-livevox-churn-93CH-4193731
[2] https://finance.yahoo.com/news/da-davidson-sees-upside-nice-170532028.html
[3] https://www.ainvest.com/news/nice-q2-2025-unpacking-contradictions-cloud-revenue-margins-ai-role-workforce-dynamics-2508/