Scott Berg, an analyst from Needham, maintained the Buy rating on Five9. The associated price target remains the same with $40.00.
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Scott Berg’s rating is based on the view that Five9 is well-positioned with two strong growth drivers: its core cloud contact-center-as-a-service (CCaaS) business and its expanding AI capabilities. He believes AI is accelerating the shift of customers from legacy on-premise contact center systems to Five9’s cloud platform, creating a multi-year tailwind for revenue growth. In his assessment, Five9’s AI strategy also differentiates it from narrower, “agentic” point solutions that lack the breadth and integration of Five9’s offering.
Additionally, Berg points to Five9’s evolving pricing model and margin structure as supportive of improving profitability over time. He views the upcoming CEO transition to Amit Mathradas positively, highlighting Mathradas’s experience in AI-driven products, automation, and scaling large software businesses as closely aligned with Five9’s strategic direction. Taken together, these factors reinforce his conviction that Five9 can drive durable growth and margin expansion, justifying his Buy rating on the stock.
Berg covers the Technology sector, focusing on stocks such as Five9, Freshworks, and Braze. According to TipRanks, Berg has an average return of -1.8% and a 43.00% success rate on recommended stocks.
In another report released on January 12, Barclays also maintained a Buy rating on the stock with a $25.00 price target.