UPDATE: JPMorgan Downgrades NICE Systems Ltd (NICE) to Underweight

June 26, 2020 4:16 AM EDT
Get Alerts NICE Hot Sheet
Price: $278.65 -1.11%

Rating Summary:
    11 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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(Updated - June 26, 2020 5:17 AM EDT)

(updating comment)

JPMorgan analyst Paul Coster downgraded NICE Systems Ltd (NASDAQ: NICE) from Neutral to Underweight with a price target of $172.00.

The analyst comments "We are downgrading NICE to Underweight based on valuation. NICE stock is trading at ~31 times our CY21 PF EPS estimate of $6.37 and ~21 times forward EV/EBITDA. Historically elevated multiples that place the company in the high-growth SaaS category of software stocks. We think the stock is fully-valued here, given EPS growth of about 15% and legacy service and product
business that is not growing and still represents the majority of NICE's business. At Underweight we expect the stock to underperform the mean of our coverage in the next 6 – 12 months. This is not a call to short the stock given solid fundamentals."

For an analyst ratings summary and ratings history on NICE Systems Ltd click here. For more ratings news on NICE Systems Ltd click here.

Shares of NICE Systems Ltd closed at $194.72 yesterday.


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