Citi Upgrades Nice Systems, Citing IT Recovery

NEW YORK (AP) — A turnaround in corporate spending on information technology is going to boost Nice Systems Ltd., said a UBS Investment Research analyst, upgrading the stock to "Buy" from "Neutral."

As the broader IT sector recovers, Nice Systems has lots of room to grow revenue via sales of its advanced applications for workplace management and call centers to existing customers, said analyst Roni Biron in a research note to investors Tuesday.

The Israeli company provides business intelligence solutions, helping customer service and financial institutions glean consumer insights and meet regulatory requirements, Biron said. An increased emphasis on regulations and compliance for the financial sector should trigger sales, he said. The company's security business is also growing, and he said Nice has enough disposable cash on hand to build this unit through acquisitions.

He raised his price target $6 to $35, which implies upside of 16.7 percent from the stock's closing price Friday.

Nice shares rose 34 cents to $30.34 after hitting a 52-week high of $31 earlier in the session. Shares had traded between $16.11 and $30.88 in the past 12 months.