Five9 stock price target maintained at $28 by DA Davidson on AI outlook

Investing.com - DA Davidson has reiterated its Neutral rating and $28.00 price target on Five9, Inc (NASDAQ:FIVN), maintaining its cautious stance on the cloud contact center software provider. The stock currently trades at $26.29, with InvestingPro data showing analyst targets ranging from $28 to $59.

The research firm hosted Five9’s CEO Mike Burkland and CFO Bryan Lee for a virtual non-deal roadshow where discussions centered on the current state of Contact Center as a Service (CCaaS) and the company’s growth prospects as artificial intelligence transforms consumer-brand interactions.

DA Davidson noted it came away "incrementally more positive" on Five9’s competitive positioning and the company’s ability to help enterprises transition to cloud-based contact center solutions.

Despite the improved outlook on Five9’s market position, the firm indicated it needs "better visibility beyond 2026 to disprove the AI bear case" before considering a rating upgrade.

The $28 price target represents approximately 2 times Five9’s projected 2026 revenue, according to DA Davidson’s analysis.

In other recent news, Five9 Inc . reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company missed earnings per share expectations but managed to exceed revenue forecasts. This development reflects a complex financial landscape for Five9, as it navigates through investor concerns over the earnings miss. Additionally, Five9 announced that its Chief Executive Officer, Mike Burkland, will be retiring from his role. Burkland will remain as CEO until a successor is appointed and will then transition to the position of Executive Chairman of the Board of Directors. A committee of independent board directors, with the help of a national executive search firm, has begun the search for a new CEO. The company plans to appoint a successor by the end of 2025. These recent developments highlight significant changes within Five9’s executive leadership and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.