Nice Earnings: Strong Outlook From AI and Enterprise Demand Lift Shares 9%; Shares Still Undervalued

Narrow-moat Nice's shares rose 9% after it reported strong fourth-quarter 2023 results. Fourth-quarter numbers and fiscal 2024 guidance were generally above FactSet consensus and our estimates. We are encouraged to hear CXOne bookings with enterprise customers are picking up, in line with our view. This is largely related to artificial intelligence demand as having a seamlessly integrated platform like Nice’s CXOne is necessary to fully leverage AI capabilities. We don’t expect to make a material change to our $265 fair value estimate. Nice shares are up 60% since November 2023, but we still think they look undervalued.