Analysts rate Five9 Inc. (FIVN:NSD) with a Strong Buy rating and a $126 target

BTIG Research lowered the FIVN stock price target from $165 to $125.

Based on the FIVN Stock Forecast from 11 analysts, the average analyst FIVN stock price target is USD 126.83 over the next 12 months. Five9 Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Five9 Inc is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, Five9 Inc’s stock price was USD 57.30Five9 Inc’s stock price has changed by -19.30% over the past week, -34.15% over the past month and -59.17% over the last year.

 

About Five9 Inc. (FIVN:NSD):

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.  The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.

 

What we like:

High market capitalization

FIVN stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

FIVN stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

High volatility

The total returns for FIVN stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

FIVN stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

FIVN stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the market news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

FIVN stock has shown below median earnings growth in the previous 5 years compared to its sector.