Cantor Fitzgerald maintains Overweight rating on Five9 stock ahead of earnings

Published 28/07/2025, 13:18
Cantor Fitzgerald maintains Overweight rating on Five9 stock ahead of earnings

Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $36.00 price target on Five9, Inc (NASDAQ:FIVN), currently trading at $28.84, ahead of the company’s second-quarter 2025 earnings report scheduled for July 31. According to InvestingPro data, 17 analysts have recently revised their earnings estimates upward for the upcoming period.

The research firm expects Five9 to deliver results in line with expectations, citing a stable operating environment based on field conversations, though noting continued deal elongation as customer experience enterprise strategies evolve alongside AI expansion.

Consensus expectations for Five9’s total revenue align with the mid-point of the company’s second-quarter 2025 guidance, projecting 9% year-over-year growth, which represents a four-point deceleration compared to the 13% growth reported in the first quarter of 2025.

Cantor Fitzgerald views these expectations as conservative, pointing out that the stronger first-quarter growth was measured against a leap year period in the first quarter of 2024, while also noting that the first quarter typically shows seasonal strength for Five9, particularly in the healthcare vertical.

The firm highlights that AI revenues continue to increase as a percentage of Five9’s overall revenue mix, with calculations suggesting AI now represents approximately 7% of total revenue, up from 6% in the fourth quarter of 2024.

In other recent news, Nice Systems has seen its price target raised by Piper Sandler from $153 to $182, while maintaining a Neutral rating. This adjustment is attributed to Nice’s successful acquisition of major enterprise deals, including two contracts generating over $100 million in annual recurring revenue. These deals are anticipated to influence the company’s financial performance mainly in 2026-2027 and may potentially lead to a re-acceleration of cloud revenue. Meanwhile, Five9, Inc. reported its first-quarter revenue for fiscal year 2025 exceeded expectations with a 13% year-over-year increase. Despite this positive performance, Five9 decided to maintain its revenue guidance for the rest of 2025, reducing the forecast by $8 million due to macroeconomic uncertainties. UBS analyst Taylor McGinnis revised Five9’s stock price target from $55 to $35, maintaining a Buy rating, reflecting a more conservative valuation. Additionally, DA Davidson held a Neutral rating on Five9 with a consistent price target of $25, acknowledging the company’s solid first-quarter performance. Five9 also announced the results of its 2025 annual meeting, where stockholders elected three Class II directors to the board.

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