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NICE's AI Growth Opportunity Will Take Longer to Materialize, Morgan Stanley Says

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NICE's (NICE) artificial intelligence growth opportunity will likely take longer to materialize, Morgan Stanley analysts said in a Tuesday note.

Analysts said they previously believed the market was overlooking NICE's positioning in Contact Center as a Service, or CCaaS, particularly due to its strong profitability relative to peers.

While the company is approaching the CCaaS opportunity with urgency, having acquired Cognigy in 2025 and increasing its focus on expanding its channel presence, durable acceleration is yet to materialize, analyst noted.

Analysts added that the company's organic reinvestment to support growth investments has meaningfully reduced forward free cash flow expectations.

Morgan Stanley downgraded the stock's rating to equal-weight from overweight, and lowered its price target to $111 from $130.

Price: $95.92, Change: $-5.42, Percent Change: -5.35%

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