Analysts Laud Five9 Post Zoom Deal Termination - Five9 (NASDAQ:FIVN)

Five9 Inc FIVN shareholders vetoed Zoom Video Communications Inc's ZM $14.7 billion deal to acquire the customer-service software company.
Canaccord Genuity analyst David Hynes upgraded Five9 from Hold to Buy. Hynes continues to believe Five9's fundamentals remain strong. Digital transformation tailwinds, continued product innovation, considerable customer momentum, and a still underpenetrated total addressable market should all contribute to sustainable 30%-plus revenue growth in the future.
Barclays analyst Raimo Lenschow upgraded Five9 from Equal-Weight to Overweight with an unchanged price target of $206, implying a 28.96% upside. The end of the Zoom discussions refocused the investment case back on the fundamentals of the business, which improved with 44% year-over-year revenue growth last quarter and 30% plus growth expectations from management.
Evercore ISI Group analyst Peter Levine upgraded Five9 from In-Line to Outperform. He believes the stock could quickly recover as he feels "plenty" of fundamental support behind Five9 at these levels.
Wells Fargo analyst Michael Turrin upgraded Five9 from Equal-Weight to Overweight and announced a $200 PT, implying a 25.2% upside. Turrin remains a believer in the longer-term secular shift towards cloud-enabled contact center technology, Five9's competitive positioning, and the durability of the growth curve ahead.
Jefferies analyst Samad Samana maintained a Hold rating on Five9 with a $200 PT. Samana was not surprised with the termination given the modest premium, the subsequent decline in Zoom's stock, and the recommendations by the advisory firms. Samana remains confident it will "durably compound high growth for years to come."
UBS analyst Taylor McGinnis lowered the PT on Five9 to $165 from $200, implying a 3.3% upside, and affirmed a Neutral. McGinnis stated that he would be assessing the risk of Zoom potentially entering the CCaaS market through another route and any demand or other concerns that may have prompted a willingness to engage in acquisition-related discussions.
Colliers analyst Catharine Trebnick upgraded Five9 to Buy from Neutral.
Price Action: FIVN shares traded higher by 1.51% at $162.15 in the premarket session on the last check Friday.

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