Five9 stock rating maintained at Hold by Jefferies on reasonable Q3 setup

Published 13/10/2025, 10:34
Five9 stock rating maintained at Hold by Jefferies on reasonable Q3 setup

Investing.com - Jefferies has reiterated its Hold rating and $28.00 price target on Five9, Inc (NASDAQ:FIVN), citing a reasonable third-quarter setup for the cloud contact center software provider. The stock, currently trading at $20.61, sits near its 52-week low of $20.50, with technical indicators suggesting oversold conditions according to InvestingPro analysis.

The investment firm noted that the implied quarter-over-quarter revenue increase would be the lowest since 2014, which management had previously attributed to more muted seasonality in the business.

Jefferies indicated that potential third-quarter upside could support a modest upward revision to Five9’s full-year 2025 guidance, following the pattern established in the first half of the year, though macroeconomic concerns persist.

The firm expects updates on Five9’s artificial intelligence traction following strong second-quarter bookings, and noted that progress on the company’s ongoing CEO search will remain a key focus for investors.

Jefferies cautioned that negative sentiment surrounding the Contact Center as a Service (CCaaS) sector may limit potential stock gains even if Five9 reports positive results.

In other recent news, Five9 Inc . reported its second-quarter earnings for 2025, revealing mixed results. The company missed expectations for earnings per share but managed to exceed revenue forecasts. In corporate developments, Five9 announced that CEO Mike Burkland will retire from his role but will remain as Executive Chairman until a successor is appointed by the end of 2025. Additionally, Sudhakar Ramakrishna, CEO of SolarWinds, has been appointed to the Board of Directors as David Welsh retires after over 14 years of service.

On the analyst front, Wells Fargo initiated coverage of Five9 with an Equal Weight rating and a price target of $28, citing a dynamic environment for Contact Center as a Service (CCaaS) despite advancements in artificial intelligence. DA Davidson maintained its Neutral rating and $28 price target, reflecting a cautious outlook on the company’s growth prospects. These analyst perspectives provide insights into the market’s view of Five9 amid ongoing developments in the industry.

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

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