Nice (NICE) is seen to have "limited room for near-term outperformance," after the company reported Q2 results and reaffirmed its 2025 revenue outlook while raising its full-year adjusted earnings guidance, RBC Capital Markets said in a note Friday.

The company reported Thursday Q2 adjusted earnings of $3.01 per diluted share. Analysts surveyed by FactSet expected $3.02. Revenue for the quarter ended June 30 was $726.7 million. Analysts polled by FactSet expected $713.7 million.

Nice reiterated its full-year revenue outlook at $2.92 billion to $2.94 billion while raising its adjusted EPS guidance to between $12.33 and $12.53 from $12.28 to $12.48.

RBC analysts said the Q2 revenue beat was "of low quality" as it was entirely driven by the company's product segment rather than by strength in its cloud segment.

The analysts also said that with no upside to guidance for the cloud segment and an expected sequential deceleration in cloud growth in Q4, there is limited room for the stock to outperform in the near term as the Q4 "setup looks less than clean."

The brokerage lowered its price target to $190 from $200, but retained an outperform rating on the stock.

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