Go BackNICE Systems shares climb after upgrade
Shares of NICE Systems Inc jumped Tuesday after an analyst said the Israeli data recording products maker is poised to grow even amid the current economic slowdown.
UBS analyst Darren Shaw upgraded NICE to "Buy" from "Neutral" and said investors may be overlooking the company's merits by taking a "non-selective" view of its sector. NICE serves businesses such as call centers, financial and government institutions and air-traffic control sites.
Investors have been concerned about technology companies selling to large corporations, especially in the financial-services sector.
Shaw estimates that about 30 percent to 40 percent of NICE's revenue is from financial institutions of some kind. But he noted that this includes "credit card issuers, collection agencies, retail banks and other entities not directly linked to subprime issues."
The analyst said NICE is also seeing growing demand for its security products, "and is becoming increasingly involved in large-scale deployments."
"We believe these early stage markets offer significant scope for growth in the coming years," Shaw added. And with $400 million in cash, the company will also likely to make at least one acquisition this year in the security market.
American Depositary Shares of NICE rose 92 cents, or 2.9 percent, to $32.19. In the past 52 weeks, the stock has traded between $24.90 and $40.95
Date - 20/02/2008
