Oppenheimer Rates NICE-Systems (NICE) An Outperform

Oppenheimer & Co. analysts Shaul Eyal, Manish Hemrajani and Hugh Cunningham reiterated their Outperform rating for shares of NICE-Systems Ltd. (Nasdaq: NICE), with a price target of $38 per share.

The analysts noted that NICE-Systems Ltd. recently beat consensus estimates for the 1st quarter of 2010 with earnings of 38 cents per share on revenue of $163 million.

The analysts also liked the fact that NICE-Systems Ltd. margins climbed to 64.1%, up from 63.2% a year earlier.

The Oppenheimer & Co. analysts wrote, "NICE delivered a consensus-beating 1Q10, driven by an improved business environment and solid execution. Key metrics were healthy, and NICE raised FY10 guidance. The integration of Orsus is proceeding smoothly, and NICE holds an impressive cash arsenal, potentially facilitating the acquisition of other attractive targets. Compliance and efficiency initiatives continue to drive Enterprise, and anti-crime and anti-terror efforts remain key drivers for Security. During FY10, NICE should continue to benefit from robust secular drivers, solid execution and improving profitability. We reiterate our Outperform rating."