Analysts Conflicted on These Technology Names: Five9 (FIVN) and Square Inc (SQ)


Analysts have been eager to weigh in on the Technology sector with new ratings on Five9 (FIVN) and Square Inc (SQ).

Five9 (FIVN)

KeyBanc analyst Brent Bracelin maintained a Hold rating on Five9 today. The company’s shares closed yesterday at $52.97.

Bracelin commented:

“Weight. We remain impressed by Five9’s solid execution, strong product strategy, expanding leadership team, and favorable secular tailwinds with a $24B contact center TAM that is in the midst of a multi-year transformation to cloud and AI. That said, investor optimism appears partially reflected at 9x CY20 EV/S vs. the peer group average at 8.2x.”

According to TipRanks.com, Bracelin is a top 25 analyst with an average return of 29.0% and a 77.7% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Coupa Software Inc, and Salesforce.com.

Currently, the analyst consensus on Five9 is a Moderate Buy with an average price target of $58.20, implying a 9.9% upside from current levels. In a report released yesterday, Stephens also maintained a Hold rating on the stock with a $53 price target.

See today’s analyst top recommended stocks >>

Square Inc (SQ)

In a report released today, Joseph Foresi from Cantor Fitzgerald maintained a Buy rating on Square Inc, with a price target of $91. The company’s shares closed yesterday at $73.62.

Foresi commented:

“: We maintain our Overweight rating on Square and our 12- month PT of $91. We are attracted to the company’s increasing market penetration, end-user growth and improving margin profile, driven by SG&A leverage and an increasing margin contribution from other services. Square reported results above expectations and raised 2019 revenue guidance. Gross Payment Volumes continued to have outsized growth in the period. We expect rapid growth to continue and foresee further margin expansion going forward, although our margin expectations have moderated. We expect these factors to drive the stock’s performance as the company continues to build out its ecosystem.”

According to TipRanks.com, Foresi is a top 25 analyst with an average return of 22.4% and a 88.6% success rate. Foresi covers the Technology sector, focusing on stocks such as International Business Machines Corporation, Jack Henry & Associates, and Fidelity National Info.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Square Inc with a $87.88 average price target, implying a 19.4% upside from current levels. In a report issued on April 17, Citigroup also reiterated a Buy rating on the stock with a $90 price target.

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