In a report released yesterday, Meta Marshall from Morgan Stanley maintained a Hold rating on Five9 (FIVN – Research Report), with a price target of $48.00.
Meta Marshall has given his Hold rating due to a combination of factors impacting Five9’s current financial outlook. The company has recently reaffirmed its Q1’25 guidance, which is expected to be in line with or better than previous expectations, but has not provided updates on the full-year 2025 outlook. This cautious approach reflects the dynamic macroeconomic environment that could influence future performance.
Additionally, Five9 has announced a 4% reduction in its global workforce, following a previous 7% reduction, as part of its efforts to manage expenses and improve margins. While these cost-cutting measures are seen as a positive step towards closing the margin and free cash flow gap compared to peers, the main driver for the stock remains topline growth acceleration. The reaffirmation of the Q1’25 outlook, although a positive signal, suggests that any near-term upside might already be factored into market expectations.
In another report released on March 20, Wells Fargo also maintained a Hold rating on the stock with a $45.00 price target.
FIVN’s price has also changed moderately for the past six months – from $28.180 to $25.240, which is a -10.43% drop .