Five9 Gains as Piper Sees Potential for Higher Bid by Zoom By Investing.com
By Dhirendra Tripathi
Investing.com – Five9 stock (NASDAQ:) rose 3% Friday as Piper Sandler upgraded the stock to overweight on prospects of Zoom Video (NASDAQ:) offering a higher price to buy the cloud-based customer-service software provider.
James Fish, an analyst, cut his target price for Five9 from $173 to $200. This is still nearly 16% more than its current level. Zoom traded at 1.6% more.
Zoom rose 1.6% on July 18. Five9 stockholders received 0.55 Zoom shares per share. It represents a price per share of Five9 stock at $200.28, and the company’s value at $13.56billion.
The acquisition is expected to enhance Zoom’s presence with enterprise customers and help the video conferencing service target the $24 billion contact center market.
Five9 is the pioneer in cloud-based contact centre software. The company’s cloud-based contact center allows customers to interact across multiple channels.
Zoom announced the deal in a note that it was adding to its cloud-based phone system, which is becoming increasingly popular.
Fish’s report comes after proxy advisory firm Institutional Shareholder Services recommended voting against the Zoom deal.
Although the company combined will be able to access a wider market, ISS stated that Five9 shareholders are exposed to a volatile stock whose growth prospects diminish as society moves towards a post-pandemic world.
Five9’s value has declined by about 5%, while Zoom shares have suffered more than 20% loss since the deal was made.
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