Five9 price target lowered to $40 from $65 at DA Davidson

DA Davidson analyst Gil Luria lowered the firm’s price target on Five9 to $40 from $65 and keeps a Neutral rating on the shares. The company’s Q2 results were ahead of expectations, but its June bookings trends were weaker than expected, leading the company materially lower its revenue guidance for 2024, the analyst tells investors in a research note. The guide implies deceleration in the second half of the year given the combination of lower projected seasonal benefits in Q4, deteriorating buyer trends, and elongated sales cycles, the firm states, adding that while it remain positive on the long-term opportunity for Five9, its decreased confidence in 2025 reacceleration keeps it on the sidelines.