No Signs of Weakness for Nice, Good Results and In Line Guidance; Maintain $296 FVE

Narrow-moat Nice reported good third-quarter results at or above the high end of guidance for both revenue and adjusted EPS. Nice modestly raised its full-year 2022 outlook, thereby effectively guiding in line for the fourth quarter, backed by continued demand for holistic cloud solutions coupled with the firm’s proven ability to drive margin expansion at-scale. Nice is not seeing the same macro pressure on demand as many of our other software companies, which is impressive. Currency was a little worse than anticipated and should remain so near term. We balance near-term risks with solid long-term fundamentals and accordingly maintain our fair value estimate of $296. With shares trading around $204, we see upside to shares but prefer some of our wide-moat names given macro turmoil. We continue to view Nice as a leader in cloud contact center solutions that is uniquely positioned to displace fragmented legacy systems with its extensive cloud-native portfolio.