B.Riley FBR Believes Liveperson (LPSN) Still Has Room to Grow


In a report released yesterday, Zach Cummins from B.Riley FBR maintained a Buy rating on Liveperson (LPSN), with a price target of $32. The company’s shares opened today at $28.12, close to its 52-week high of $28.37.

Cummins noted:

“LivePerson (LPSN) reported 4Q18 results after the market close on Thursday, 2/21. We published our initial takeaways in our 2/22 flash note. Shares rose ~5.5% (versus Friday’s trading session on the back of strong 4Q results, record contract signings, and upside FY19 revenue guidance. While adjusted EBITDA guidance was below our estimate and consensus, we understand the importance of ramping headcount investments, specifically in 1H19, to support accelerating revenue growth in 2H19 and beyond. Our FY19 revenue estimate remains unchanged, but we are reducing our FY19 adjusted EBITDA estimate to reflect the expected ramp in headcount investments in 1H19. We are also introducing FY20 estimates which assume 20% Y/Y revenue growth and mid-single-digit adjusted EBITDA margin.”

According to TipRanks.com, Cummins is a 1-star analyst with an average return of -1.1% and a 55.8% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, American Software, and ChannelAdvisor.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Liveperson with a $32 average price target, implying a 13.8% upside from current levels. In a report issued on February 22, Oppenheimer also reiterated a Buy rating on the stock with a $33 price target.

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The company has a one-year high of $28.37 and a one-year low of $14.10. Currently, Liveperson has an average volume of 498.4K.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock.

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LivePerson, Inc. engages in the provision of mobile and online messaging solutions. It operates through Business and Consumer segments. The Business segment enables brands to leverage intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies.

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