Citi analysts increased their target price for NICE Systems (NASDAQ:NICE) to $338.00, up from $278.00, while maintaining a Buy rating.

The analysts expect the upcoming Q2 results (scheduled on Aug 17) to outperform, driven by positive partner feedback and discussions at the NICE Interactions conference. They predict a 1-1.5% top-line beat, with benefits from new engagements and postponed Q1 deals. CIO survey indicated an enhanced prioritization of CCaaS (Contact Center as a Service) and the first increase in the IT budget since September 2021.

Though NICE's federal activity is weaker year-over-year, the analysts remain optimistic, projecting sustained double-digit growth and expanding margins due to GenAI upselling, as the company gradually adopts a usage-based revenue model.