synopsis

A Jefferies analyst said demand neither picked up as expected nor worsened as the quarter progressed.

Five9, Inc. (FIVN) stock received a steep price-target reduction shortly before the San Ramon, California-based company’s first-quarter results.

The company is a provider of a virtual contact center cloud platform.

On Sunday, Jefferies analyst Samad Samana lowered the price target for Five9 stock to $28 from $45 and maintained a ‘Hold’ rating, The Fly reported.

The analyst does not expect the quarter to be surprising. He also said demand neither rose as expected nor worsened as the quarter progressed.

Other research firms, such as Piper Sandler, DA Davidson, Mizuho, Morgan Stanley, and Rosenblatt, have also reduced their respective stock price targets in the run-up to the quarterly results. 

These firms attributed their tempered outlook primarily to the Trump tariffs, which are expected to hurt growth,

Five9 is scheduled to release its results for the first quarter of the fiscal year 2025 after the market closes on Thursday. 

According to Finchat, analysts, on average, expect the company to report adjusted earnings per share (EPS) of $0.49 and revenue of $272.6 million for the quarter. This compares to the year-ago numbers of $0.48 and $247.01 million. 

Five9 stock reacted positively to the company’s fourth-quarter results released in late February, which showed better-than-expected quarterly results and upbeat guidance for the first quarter as well as the fiscal year 2025.

The company reaffirmed its guidance in a filing on April 3. At that time, the company also announced plans to reduce its workforce by 4% as it prioritizes investments in key strategic areas, including artificial intelligence (AI).

The company said the plan is expected to be substantially complete by the end of 2025.

In the fourth-quarter earnings release, CEO Mike Burkland touted the potential of the company’s AI platform and trusted AI experts. 

On Stocktwits, retail sentiment toward the Five9 stock stayed ‘neutral’ (54/100), and the message volume was ‘high.’

FIVN sentiment and message volume as of 9:50 pm ET, April 27 | source: Stocktwits

Five9 stock is down over 38% year-to-date. It has traded in a range of $21.04-$60.76 over the past year. The Koyfin-compiled consensus analysts’ price target for the stock is $45.07, implying an 80% upside potential from Friday’s close.

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