Nice (NICE) remains a leading player in the cloud contact center market, with limited competitors able to offer similar functionality at scale and strong conversational artificial intelligence capabilities, Morgan Stanley said in a Monday note.
The company's large base of legacy on-premise workforce engagement management customers provides a durable source of growth as those customers transition to cloud offerings at higher average selling prices, the investment firm said. Morgan Stanley lowered its price target on Nice to $130 from $148 while maintaining its overweight rating.
Morgan Stanley highlighted RingCentral's (RNG) leadership position in the unified communications market and cited the company's relationships with providers including Avaya, AT&T (T) and BT. Those partnerships give RingCentral access to about half of unified communications-as-a-service deals, the brokerage added.
While uncertainty around RingCentral's longer-term growth profile remains, the company continues to execute on profitability expansion and improving capital returns, Morgan Stanley said. The firm raised its price target on RingCentral to $40 from $33 while maintaining its equal-weight rating.
Price: 90.56, Change: -2.17, Percent Change: -2.34
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