BUZZ-Five9 falls as Piper Sandler downgrades to 'neutral'

Reuters01-05
BUZZ-Five9 falls as Piper Sandler downgrades to 'neutral'

** Shares of call-center software firm FIVN.O fall 1.22% to $18.58 in premarket trading

** Piper Sandler downgrades stock to "neutral" from "overweight" rating

** Brokerage highlights concerns about AI disrupting traditional seat-based pricing models and will weigh on the business

** CCaaS (contact center as a service) conversions are still happening but taking longer - brokerage

** Piper Sandler cuts target price to $21 from $26, representing an 11% upside to the stock's last close of $18.81

** "A new CEO has taken over, but the best path medium-term would be likely to go private at this stage" - Piper Sandler

** Last year in December co appointed Amit Mathradas as new CEO

** 16 of 22 brokerages rate the stock "buy" or higher, six "hold"; their median PT is $35 - data compiled by LSEG

** Up to previous close, stock down ~54% over the past 1 year

(Reporting by Kanishka Ajmera in Bengaluru)

((mail to: Kanishka.Ajmera@thomsonreuters.com))

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