Cantor lists monday.com and NICE among AI picks

The continued expansion of AI and GenAI (generative artificial intelligence) has created opportunities for software infrastructure companies in these worlds, and US investment bank Cantor has selected stocks that are expected to benefit from this trend.

Positive image for monday.com

Thomas Blakey, Cantor Software Analyst, began covering a range of companies in the sector, which includes two Israeli companies – monday.com (Nasdaq: MNDY), which developed the business operating system, and NICE SYSTEMS LIMITED (Nasdaq: Nice – good; level:Nice – good), which provides customer relationship management and risk management systems. Other choices include US tech giants such as Microsoft, Oracle and Palantir.

Blakey believes this field will lead to organizations needing to integrate data systems, security, real-time monitoring capabilities, and more. Monetization of companies in the field of artificial intelligence will be estimated mainly from the increase in usage and consumption, as well as from the consolidation of enterprise IT expenses. At the same time, there will be service providers in this space who will also be able to benefit from direct revenue from AI products, such as specific software, various features, and more.

Among Blakey’s top three picks in this space is monday.com, which was co-founded by co-CEOs Roy Mann and Eran Zinman, and is trading on the Nasdaq with a market cap of $12.1 billion after a positive 2024, despite declining from its peak. In November. monday.com has developed a business operating system for enterprises, which helps manage business processes and includes artificial intelligence features such as the option to automate emails. The company held its IPO in 2021 at a company valuation of $6.8 billion, which nearly doubled.

Blakey says his checks with monday.com clients indicate a positive picture. The company is working to expand its platform and add new features that increase its revenues. Despite this, he says the stock is trading at a discount compared to similar companies. The price target for Monday.com stock is $292, an increase of 21% from the current price on the Nasdaq.

In contrast, Blakey gave NICE Systems a “neutral” recommendation. Under the leadership of new CEO Scott Russell, NICE is leading the Contact Center as a Service (CCaaS) sector – cloud services for customer relationship management (CRM). In recent years, NICE has focused on developing a comprehensive AI-based platform. He estimates that as the complexity of implementing solutions in the field increases, there is a delay in completing deals, which will lead to a lower revenue growth rate in 2024.

Published by Globes, Israel Business News – en.globes.co.il – on January 21, 2025.

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