What happened
Investors were really dialed in to consumer relations tech specialist LivePerson (LPSN 10.86%) at the end of the week. On Friday, the company's share price leaped more than 19% higher, largely on the back of an analyst upgrade. That performance trounced even the frothy S&P 500 index, which rose by 1.6%.
So what
The analyst going on a bull run was Craig-Hallum's Jeff Van Rhee, who changed his recommendation on LivePerson stock to buy from his previous hold. His price target on the shares was raised to $15 apiece, which if reached would mean a 30% improvement over the current level.
Van Rhee's new take on LivePerson is due to what he considers to be a significant overreaction to the news that the specialized tech company's latest set of earnings would be delayed. On Tuesday, it announced that it is rescheduling its fourth-quarter 2022 release. This is due to the longer-than-expected time needed to file its 2022 annual report in the form of a mandated 10-K regulatory document.
LivePerson did not set a new date for either, but did say that as long as it files the 10-K within the Securities and Exchange Commission's 15-day grace period it will be in the clear.
NASDAQ: LPSN
Key Data Points
Now what
As often happens with such delays, dismayed investors sold off LivePerson aggressively. Van Rhee considers the resulting depressed price to be an opportunity.
In a new research note, he wrote that "We see the company as likely a double digit/mid-teens grower the next few years and trading 11x what we view as a likely EBITDA for '23."
