Five9 double upgraded to Buy at BofA with bear thesis having ‘run its course’

BofA upgraded Five9 to Buy from Underperform with an unchanged price target of $63. The firm’s bullish view is underpinned by AI tailwinds in the near- and medium-term, a belief that competitive and market related threats are “more than priced into shares,” potential upside from strategic actions and what it views as a “compelling” risk/reward given that its unchanged price target points to 54% upside potential. The firm says a portion of the recent multiple compression is “warranted,” but sees the bear thesis having “run its course,” the analyst tells investors.