Roth Capital remains bullish on Five9, says would add aggressively on weakness

Roth Capital analyst Richard Baldry notes that Five9’s (FIVN) Q3 revenues and earnings moderately beat its forecasts, but revenue growth continued to slow. Q4 guidance is calling for another slightly slower growth rate, an outlook that will weigh on its valuation until a sequential improvement is demonstrated, in Roth’s view. While sentiment will remain challenged by weak guidance, Five9’s already severely weakened valuation leaves the firm constructive, as does its improving bookings, AI revenue strength and new $150M share buyback authorization. Roth reiterates a Buy rating on the shares with a price target of $40. The firm says it “would add aggressively on weakness.”