Roth Capital Lowers PT on LivePerson (LPSN) Following the Loss of AT&T
Roth Capital maintains their Buy rating on LivePerson (NASDAQ: LPSN), but lowered the price target to $14.00 (from $23.00), following a major customer loss of AT&T. This effected the outlook on the company dramatically, given that LSPN's results were still fair. 1Q15 revenues of $59.8M drove EPS to $0.04, versus forecasts of $61.0M and $0.05, respectively.
Roth Capital analyst, Richard Baldry, commented on the AT&T loss, saying, "While LPSN's aggressive campaign against "1-800" service call costs left it in an odd position given AT&T was its largest customer, we had not expected it to lose it as a customer outright. Other factors that appear to have played a part included LPSN's unwillingness to continue significant custom development efforts, or to support a non-SaaS (on-premise) platform long-term."
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Shares of LivePerson closed at $9.46 yesterday.