We recently published 10 Best SaaS Stocks Trading at a Discount. NICE Ltd. (NASDAQ:NICE) is one of the best SaaS stocks trading at a discount.
NICE Ltd. (NASDAQ:NICE) provides software for customer engagement, financial fraud management, and other associated applications. Investment firm Wedbush was out with some bad news for the company when, on December 8th, it downgraded the stock to Neutral from Outperform. NICE Ltd. (NASDAQ:NICE)’s share price target was also cut to $120 from $170. A subsequent report discussed some of the reasons behind the rating action to point out that Wedbush was worried about the AI market.
Wedbush’s action came soon after Morgan Stanley had discussed NICE Ltd. (NASDAQ:NICE)’s shares. On October 21st, the firm set a $193 share price target for the software company and kept an Overweight rating. In its coverage, Morgan Stanley noted that while its software checks for the third quarter were not worrisome, they were moderate given the trends for the first and second quarters. The bank added that even if software surprised to the upside, investor sentiment was unlikely to change. NICE Ltd. (NASDAQ:NICE)’s third-quarter financial results, reported on November 13th, saw the firm post $732 million in revenue and $3.18 in earnings per share. Its revenue beat analyst estimates of $728 million, while the EPS were in line. NICE Ltd. (NASDAQ:NICE)’s management was careful to note that the firm experienced 13% year-over-year cloud growth during the third quarter.
While we acknowledge the potential of NICE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
