Skip to main content

Market Overview

UPDATE: Bank Of America Reiterates On Five9 On Disappointing Guidance, Intact Thesis

Share:

In a report published Tuesday, Bank of America analyst Nikolay Beliov reiterated a Buy rating on Five9 (NASDAQ: FIVN), but lowered the price target from $10.00 to $8.50.

In the report, Bank of America noted, “The stock is down -24% in the after-market after FIVN reported in-line 2Q results and lowered 2014 revenue guidance by 4% ($4mn) at the second earnings call as a public company. This development is clearly disappointing but we believe market fundamentals are positive while the company's technology and product functionality is improving. The $4m impact ($2m per quarter) is split 70% in usage and 30% in seats.

"Six large customers (three healthcare and three business process outsourcers), which remain FIVN customers, scaled back as the Affordable Healthcare Act impacted spending plans. We estimate 1,000+ seats were impacted or ~3% of the install base. FIVN increased net income guidance slightly as it slowed down hiring of non-customer facing personnel. 2Q revenues, gross margins, and EPS came largely in-line. We lower our revenues by $2m/quarter, in-line with the slower spending for 2014 per quarter by these six customers. In light of the market potential, we view the current growth vs margin trade-off as the right strategy.”

Five9 closed on Monday at $7.62.

Latest Ratings for FIVN

DateFirmActionFromTo
Mar 2021JefferiesInitiates Coverage OnBuy
Feb 2021Wells FargoMaintainsOverweight
Feb 2021Truist SecuritiesMaintainsBuy

View More Analyst Ratings for FIVN
View the Latest Analyst Ratings

 

Related Articles (FIVN)

View Comments and Join the Discussion!

Posted-In: Bank of America Nikolay BeliovAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
FOARaymond JamesInitiates Coverage On15.0
TZOONoble Capital MarketsUpgrades18.0
IMAXWedbushUpgrades26.0
EIGBoenning & ScattergoodUpgrades49.0
HUYA86 ResearchUpgrades22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com