Analyst Scott Berg of Needham maintained a Buy rating on Five9, retaining the price target of $40.00.
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Scott Berg has given his Buy rating due to a combination of factors that indicate Five9’s fundamentals are improving and growth is reaccelerating. The company delivered strong first-quarter results, with AI-related revenue surging year over year and key demand metrics, such as long-term dollar-based retention, inflecting positively after a prolonged decline.
He also highlights that subscription revenue growth has stabilized, management under new leadership is providing greater operational transparency, and a larger share repurchase program underscores confidence in near-term performance and free-cash-flow per share. Additionally, guidance calling for faster revenue expansion in FY26, alongside robust expected AI growth, supports the view that demand trends remain healthy and justify maintaining a $40 price target.