FBN Securities initiates Five9 stock coverage with outperform rating

Investing.com reports that FBN Securities has started covering Five9, Inc. (NASDAQ:FIVN) with an Outperform rating and a price target of $40.00. The current stock price of $33.02 is close to its 52-week high of $35.18, after a significant 110% increase over the past six months. FBN Securities highlights Five9's role as a voice-led enterprise customer-experience platform, with AI revenue scaling above $150 million, representing roughly 15% of subscription revenue and growing 78% year-over-year.

The firm also mentions a recent $100 million contract with a Fortune 100 financial services company through Google Cloud Marketplace, as well as impressive subscriber retention rates and annual seat count growth. Additionally, Five9 is capturing over 70% of large cloud-migration down-sales in a $24 billion market, indicating potential for a $25 billion CX-AI opportunity.

The company's gross margin is currently at 61.4%, limited by telecom minutes-resale and professional services costs. FBN Securities notes that management has been actively buying back shares, and the stock seems undervalued based on Fair Value analysis. Five9's recent Q2 2026 earnings beat analyst expectations, with adjusted earnings of $0.70 per share compared to the $0.68 forecast, and revenue of $312.4 million, exceeding the $306.43 million estimate.