Benchmark Downgrades LivePerson (LPSN) to Hold Following Weak Q3, Lower Outlook
Benchmark downgraded LivePerson (NASDAQ: LPSN) from Buy to Hold with a price target of $13.00 (from $22.00) following weak Q3 results and meaningfully lowered outlook.
"While we are still believers in the longer-term story (i.e., product line recharge,
increased sales capacity to support the new product pipeline and reasonable
valuation), we prefer to wait for better visibility as we think it could take another 2-
3 quarters before the Company's product bookings begin to convert to meaningful
revenue and earnings," the firm comments.
On the thrid quarter, the company posted revenue and non-GAAP EPS of $39.7 million (+16% y/y) and $0.08 vs. the firm's estimates of $41.2 million and $0.08, which matched the consensus. Management attributed the revenue shortfall to extended sales cycles related to customer implementations from LPSN's new products. Bookings were the highlight in the quarter, growing 56% yoy to $8.1 million.
For an analyst ratings summary and ratings history on LivePerson click here. For more ratings news on LivePerson click here.
Shares of LivePerson closed at $14.68 yesterday, with a 52 week range of $10.76-$19.60.
"While we are still believers in the longer-term story (i.e., product line recharge,
increased sales capacity to support the new product pipeline and reasonable
valuation), we prefer to wait for better visibility as we think it could take another 2-
3 quarters before the Company's product bookings begin to convert to meaningful
revenue and earnings," the firm comments.
On the thrid quarter, the company posted revenue and non-GAAP EPS of $39.7 million (+16% y/y) and $0.08 vs. the firm's estimates of $41.2 million and $0.08, which matched the consensus. Management attributed the revenue shortfall to extended sales cycles related to customer implementations from LPSN's new products. Bookings were the highlight in the quarter, growing 56% yoy to $8.1 million.
For an analyst ratings summary and ratings history on LivePerson click here. For more ratings news on LivePerson click here.
Shares of LivePerson closed at $14.68 yesterday, with a 52 week range of $10.76-$19.60.