NICE (NICE) could see some growth challenges in the near term, with its cloud journey still in the early stages, Wedbush said in a Friday note.
Wedbush analysts noted that the company's Q4 revenue of $721.6 million beat consensus estimates and was above the midpoint of its guidance, driven by cloud revenue of $533.9 million, which was up 24% year over year. The company expects generative AI to lead to an increase in big-figure deals this year as it provides automation solutions for customers, the analysts said.
However, weaker 2025 revenue guidance, particularly lower cloud revenue growth, marred the company's solid performance for the quarter, the analysts said. On a more optimistic note, they said that the new CEO, Scott Russell, should be a "positive catalyst" to the growth story of the company.
Wedbush retained its outperform rating for NICE and lowered its price target to $200 from $250.
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