In a report released today, Scott Berg from Needham maintained a Buy rating on Five9, with a price target of $40.00.
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Scott Berg has given his Buy rating due to a combination of factors, primarily focusing on Five9’s strong financial performance in the second quarter. The company reported a notable acceleration in subscription revenue growth, reaching 16%, largely driven by a significant 42% year-over-year increase in Enterprise AI revenues. This performance suggests a positive shift in market sentiment towards Five9, especially in the context of the evolving Agentic world.
Furthermore, the sales metrics were impressive, with Enterprise AI bookings tripling year-over-year and total new logo AI bookings doubling. Despite a slight reduction in expectations for the second half due to macroeconomic caution, these robust sales figures indicate a strong market position. The unexpected retirement of the long-time CEO and the appointment of a new CFO were also highlighted, but the overall outlook remains optimistic, supporting the Buy recommendation.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 47 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.