UPDATE: Morgan Stanley Downgrades Five9, Inc (FIVN) to Equalweight, Following Acquisition

(Updated - July 19, 2021 4:31 PM EDT)

Morgan Stanley analyst Meta A. Marshall downgraded Five9, Inc (NASDAQ: FIVN) from Overweight to Equalweight, PT $200.00

The analyst comments "We are downgrading FIVN to EW (from OW) given we do not expect another bidder for the vendor and believe the deal's ~$200/share price for FIVN common stock is about fair and in-line with our maintained PT of $200 and ZM PT of $360. Our PT remains $200 on our assumed revenue CAGR of ~32% through 2022, equating to a ~19x EV/22e revenue multiple. Our bull case valuation is now $230 (from $310), representing ~21x EV/22e bull case revenue (from ~26-27x), which also assumes a reduced growth rate of ~32% (from 38%). Achievement would be on a competitive bid, which we see as unlikely. Our bear case valuation comes up to $170 (from $130) and now represents 16x EV/22e bear case revenue (from ~13x) and assumes ~32% growth (from ~28%). Achievement would be on deal break if business condition with FIVN decelerated."

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 $177.60 yesterday.

You May Also Be Interested In

• Okta, Inc (OKTA) PT Raised to $235 at DA Davidson Following Oktane 2026
• Paychex (PAYX) PT Lowered to $115 at UBS on Pace of Revenue Growth
• On Holding AG (ONON) PT Raised to $33 at BMO Capital