NICE (NICE) posted weaker than expected Q1 results but the stock is offering attractive valuation, RBC Capital Markets said in a Thursday note.

"Q1 results were marked by all upside driven by the Product segment as cloud revenue was once again soft," RBC analysts said in the note.

"While we view the quarter as a speed bump, we think the nature of market transition will benefit NICE over the medium term, leading us to be buyers on weakness," the note said.

The report also pointed to long-term opportunity amid growing growth pressures.

"In the long-term, we think the highest end of the market has the most attractive economics/retention dynamics," the note said. "NICE remains a market leader with a significant runway for growth."

"While cloud growth estimates remain intact, we like NICE's leadership position and view valuation as attractive," said RBC, keeping its outperform rating with $200 price target.

Price: 163.26, Change: +2.14, Percent Change: +1.33