Five9, Inc. (NASDAQ:FIVN) is one of the 12 Stocks that Will Bounce Back According to Wall Street Analysts. On January 5, Piper Sandler downgraded its rating on Five9, Inc. (NASDAQ:FIVN) from Overweight to Neutral and lowered its price target from $26 to $21.
The firm acknowledged that Five9, Inc. (NASDAQ:FIVN) shares look attractive based on valuation and risk-reward. However, the company has room to improve its free cash flow. Piper Sandler also noted that the company is slowly gaining share in the broader customer experience market.
The research firm raised concerns about Five9, Inc. (NASDAQ:FIVN) not gaining market share in the Contact Center as a Service (CCaaS) segment. The company is facing positioning challenges in the upmarket segment and is also dealing with rising competition.
Piper Sandler also noted that Five9, Inc.’s (NASDAQ:FIVN) revenue growth has decelerated to below 10%. While the company’s management has shared an outlook for 2026 that suggests growth could accelerate again to above 10% in the second half of 2026, the firm believes this improvement will likely take time to materialize.
Previously, on December 18, DA Davidson also reaffirmed its Neutral rating on Five9, Inc. (NASDAQ:FIVN) with a price target of $24 after the company announced a new CEO. Da Davidson sees the new CEO, Amit Mathradas, as a “positive addition.” The firm highlighted his experience in scaling businesses internationally and driving product innovation.
Five9, Inc. (NASDAQ:FIVN) is a leading provider of call center solutions. With its Intelligent CX Platform, the company helps businesses manage customer interactions for enhanced customer experience (CX) and agent efficiency.
While we acknowledge the potential of FIVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best US Penny Stocks to Buy and 10 Best New Penny Stocks to Invest In.
Disclosure: None. This article is originally published at Insider Monkey.
