NICE Ltd (NASDAQ:NICE) is one of the most undervalued cybersecurity stocks to buy now. On July 28, DA Davidson initiated coverage on NICE Ltd (NASDAQ:NICE) with a Neutral rating and a price target of $195, implying over a 42% upside from the current price of $143.69. The firm’s initiation came after the Israeli company agreed to acquire Cognigy for $955 million.
A data scientist sitting in front of a monitor to review the performance of AI-driven digital business solutions.
Cognigy is a private company that provides enterprises with a platform that can help them build and manage AI-powered conversational agents, which help improve customer service and support. According to DA Davidson, the acquisition is a strategic step that could help NICE Ltd, a global leader in AI-powered customer experience, further its position in the AI space, particularly in customer service and automation.
However, DA Davidson gave a caveat that the price Nice is paying for the acquisition is high based on the company’s current size. The price represents more than 10% of the company’s market cap. While DA Davidson thinks that the move has long-term benefits, it also believes the valuation is difficult to justify in the short term.
NICE Ltd offers a number of cybersecurity solutions, particularly focusing on financial crime. However, the company also provides customer experience management, AI-driven analytics, and workforce engagement.
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