Needham analyst Scott Berg maintained a Buy rating on Five9 (FIVN – Research Report) today and set a price target of $52.00.
Scott Berg has given his Buy rating due to a combination of factors that indicate a promising future for Five9. The recent discussions with Five9’s outgoing and incoming CFOs have bolstered confidence in the company’s business trajectory for FY25. Despite a normalization in demand and pipeline activity following the second quarter’s ‘AI Fog’, there is a strong focus on AI-specific demand where Five9 is well-positioned to succeed as a platform vendor, offering it a competitive edge.
Additionally, the inclusion of Five9 in the Google Cloud Platform marketplace is anticipated to contribute to better-than-expected performance in the latter half of FY25. The company’s initial guidance for FY25 is conservatively set, taking into account the macroeconomic environment, which suggests a favorable setup for the fiscal year. Furthermore, Five9’s significant initiatives aimed at enhancing profitability are expected to result in its first GAAP profitable year, further supporting the Buy recommendation.
Based on the recent corporate insider activity of 46 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.