Needham analyst Scott Berg has maintained their bullish stance on FIVN stock, giving a Buy rating on April 29.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Five9’s strong financial performance and growth potential. The company reported solid first-quarter results that contradicted recent negative narratives, particularly those suggesting a slowdown in deal trends. Notably, Five9 experienced its best install base sales growth in three years, despite some large deals being deferred to the second quarter, one of which has already been secured.
Additionally, the company’s AI-related bookings have been a significant growth driver, accounting for 20% of new enterprise bookings and showing a 32% year-over-year increase in enterprise AI revenues. This trend underscores the positive impact of AI demand on Five9’s business. Furthermore, the updated guidance indicates that subscription revenue growth is expected to pick up in the second half of the year. The company has also set conservative financial targets for 2027, aligning with the Rule of 40 framework. Despite these positive indicators, Five9’s shares are considered undervalued, trading at less than three times recurring revenues, which supports the Buy rating.
In another report released on April 29, Canaccord Genuity also maintained a Buy rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FIVN in relation to earlier this year.