8 Tech Stocks with Biggest Upside Potential According to Analysts

4) NICE Ltd. (NASDAQ:NICE)

Expected Upside Potential: 54.94%

Number of Hedge Fund Holders: 29

NICE Ltd. (NASDAQ:NICE) offers cloud platforms for AI-driven digital business solutions worldwide.

NICE Ltd. (NASDAQ:NICE) saw expansion in its market share as a result of increased demand for its CXone platform and AI solutions. The company remains on track to complete its $300 million share buyback program by Q3 2024 end and expects continued revenue growth for the remainder of the year. It expects revenue distribution to be consistent with prior years, with possible acceleration in Q4 2024 because of seasonality.

While NICE Ltd. (NASDAQ:NICE) expects strong cash flow generation and a significant rise in FCF for the year, the company also sees continued growth in cloud margins and profitability. Significant investments and increased spending should help increase the demand for AI. Since Cloud migration remains more advanced in SMBs, NICE Ltd. (NASDAQ:NICE) anticipates that larger enterprises will also follow.

Long-term investments focused on architecture and solutions should continue to contribute to the market share.  NICE Ltd. (NASDAQ:NICE)’s focus on AI and strategic investments seems to be paying off, with robust bookings and customer adoption. For Q3 2024, the company expects non-GAAP total revenues to be between $676 million – $686 million, exhibiting 13% growth YoY at the midpoint. Also, non-GAAP fully diluted EPS should be between $2.62 – $2.72.

JMP Securities reissued a “Market outperform” rating, giving a $300.00 target price on the shares of NICE Ltd. (NASDAQ:NICE) on 16th August.

Parnassus Investments, an investment management company, released the second quarter 2024 investor letter. Here is what the fund said:

“NICE Ltd. (NASDAQ:NICE) reported first-quarter earnings that exceeded consensus estimates. However, the stock fell on news the company’s CEO plans to leave at the end of the year and on concerns that its contact center software would be replaced by generative AI. We believe the concerns are overblown and anticipate instead that the firm will integrate AI features successfully.”