Nice’s AI-Focused CXi Platform Paves Compelling Growth Path Through 2026; Maintain $296 FVE

Nice hosted its annual investor day on May 24, highlighting a new five-year plan focused on AI-enabled digital customer engagement, which reiterates the company’s long-term profitability-focused financial expectations and an accelerating move to the cloud. While the conference shed additional light on Nice’s increasingly differentiated positioning within its core verticals of customer engagement, financial crime and compliance (FC&C), and public safety, we believe our model already considers robust top-line growth and margin expansion in line with management’s discussion. As such, we are maintaining our $296 fair value estimate for narrow-moat Nice. With shares trading around $190 following a broad selloff of software stocks in 2022, we believe current valuation presents an attractive buying opportunity for investors looking to capitalize on the migration of contact centers to the cloud and the cloudification of the financial-services industry with a company shrewdly positioned at the intersection of legacy-like upmarket reach and best-of-breed native cloud capabilities.