Expert Outlook: Five9 Through The Eyes Of 13 Analysts

In the latest quarter, 13 analysts provided ratings for Five9 FIVN, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 5 1 0 0
Last 30D 1 0 0 0 0
1M Ago 5 1 1 0 0
2M Ago 0 0 0 0 0
3M Ago 1 4 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Five9, presenting an average target of $84.0, a high estimate of $95.00, and a low estimate of $70.00. Highlighting a 7.58% decrease, the current average has fallen from the previous average price target of $90.89.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Five9. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Scott Berg Needham Maintains Buy $90.00 -
Taylor McGinnis UBS Lowers Buy $81.00 $90.00
Michael Turrin Wells Fargo Lowers Overweight $85.00 $90.00
Catharine Trebnick Rosenblatt Maintains Buy $80.00 $80.00
Scott Berg Needham Maintains Buy $90.00 -
Catharine Trebnick Rosenblatt Lowers Buy $80.00 $90.00
David Hynes Canaccord Genuity Lowers Buy $75.00 $90.00
Lauren Lieberman Morgan Stanley Lowers Equal-Weight $70.00 $80.00
Rishi Jaluria RBC Capital Announces Outperform $80.00 -
Thomas Blakey Keybanc Lowers Overweight $86.00 $93.00
Michael Turrin Wells Fargo Lowers Overweight $90.00 $100.00
Ryan Macwilliams Barclays Lowers Overweight $95.00 $105.00
Scott Berg Needham Maintains Buy $90.00 -

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Five9. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Five9 compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Five9's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Five9 analyst ratings.

Delving into Five9's Background

Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company's Virtual Contact Center platform combines core telephony functionality, omnichannel engagement, and various modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9's modules include digital self-service, agent assist technology, workflow automation, as well as workforce optimization solutions that optimize call center efficiency, and manage interaction quality and agent performance.

Financial Insights: Five9

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Five9 displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 13.08%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Five9's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -2.87%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Five9's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -1.39%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Five9's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.42%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Five9's debt-to-equity ratio surpasses industry norms, standing at 2.5. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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