Credit Suisse Rates LivePerson Inc Outperform and Increases Price Target

Credit Suisse raised its Price Target from $13 to $17 on LivePerson, Inc. LPSN and raised its Rating from Neutral to Outperform in a report issued Wednesday.

Analysts led by Michael Nemeroff expressed increased confidence that revenue growth will accelerate in 2015 while increasing margins.” 

The report noted a number of items that could improve the company’s performance including “1) pent-up demand for its new LiveEngage 2.0 platform...2) a sizeable implementation backlog of enterprise customers...3) new customer signings and conversion of existing enterprise customers at potentially higher rev/customer and 4) uniformly positive customer feedback about the Engage 2.0 product platform and the new usage-based pricing model.”

Nemeroff increased the 2015 revenue estimate from $239.1 million to $241.0 million.  The new $17 Price Target implied a 2015E EV/Sales multiple of 3.6x, up from the previous 2.7x.

LivePerson, Inc. recently traded at $14.10 in the pre-market Thursday, up 3.30 percent.