Cracking The Code: Understanding Analyst Reviews For Five9

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Five9 FIVN has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

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 2 1 0 0
Last 30D 1 0 0 0 0
1M Ago 1 0 0 0 0
2M Ago 5 1 1 0 0
3M Ago 0 1 0 0 0

Analysts have set 12-month price targets for Five9, revealing an average target of $82.1, a high estimate of $90.00, and a low estimate of $70.00. Highlighting a 6.17% decrease, the current average has fallen from the previous average price target of $87.50.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Five9 is derived from recent analyst actions. The following is a detailed summary of 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 $90.00
Scott Berg Needham Maintains Buy $90.00 $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 -

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Five9. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Five9's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Five9 analyst ratings.

Unveiling the Story Behind Five9

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.

Key Indicators: Five9's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Five9's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.08% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Five9's net margin is below industry averages, indicating potential 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 financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -1.39%, the company showcases efficient use of equity capital and strong financial health.

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 stands notably higher than the industry average, reaching 2.5. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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

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