Needham & Company Raises Price Target on Five9 (FIVN) Following Strong 3Q

Needham & Company reiterated a Buy rating on Five9, Inc (NASDAQ: FIVN), and raised the price target to $18.00 (from $15.00), following the company's 3Q earnings report. FIVN reported revenue of $41.0mm, ahead of $39.1mm estimates. EPS was ($0.00), ahead of ($0.05) estimate. The company raised its FY16 revenue guidance by $2.9mm, or more than the $1.9mm 3Q outperformance, while raising EPS guidance by $0.04 which was in line with the 3Q beat.

Analyst Scott Berg commented, "Five9 reported a solid 3Q with revenue and EPS upside while reporting accelerating sales metrics. Greater partner contributions drive continued momentum in the company's enterprise customer segment with LTM enterprise revenue growth accelerating above 40% for the second consecutive quarter to 43%. Although the company reported operating profit for the second consecutive quarter, we expect the company to keep its foot on the investment accelerator to capture share in a market experiencing dislocation from recent M&A consolidation activity. We raise our PT to $18 which reflects comparable valuations of other 25% plus annual growth SaaS companies near profitability."

For an analyst ratings summary and ratings history on Five9, Inc click here. For more ratings news on Five9, Inc click here.

Shares of Five9, Inc closed at $14.24 yesterday.

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