UPDATE: JPMorgan Downgrades NICE Systems Ltd (NICE) to Underweight
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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."
Shares of NICE Systems Ltd closed at $194.72 yesterday.
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