A young demographic could help lift the fortunes of contact center solutions provider Five9 (FIVN 0.44%). In a new research note published Tuesday, one analyst tracking the company pointed out that it could benefit strongly from catering to such a user base. Investors clearly took this argument to heart, as they ended up piling in to Five9 shares and sending them nearly 4% higher in price.
Teens like to use their phones for customer support
That analyst was Piper Sandler's James Fish. In his latest take on Five9 stock, he reiterated his overweight (buy, in other words) recommendation and $86 per-share price target. At that level, Fish is anticipating a nearly 40% rise in price.
In the note, the Piper Sandler prognosticator opined that around 50% of teenage consumers still prefer to use their phones for customer service functions. Such solutions are Five9's wheelhouse, so if Fish is accurate and this trend holds, it could be quite the foundation for the company's business.
He did sound a warning, however, writing that "Concern remains around whether net-agent count in the market begins to contract, especially with the impact of artificial intelligence (AI), but this has not shown up yet."
Adding to already-appealing services
Five9 provides cloud-based solutions that not only connect a client's users to the appropriate customer service agent, but also quickly supply detailed information about that user. That's already an appealing prospect, given the many headaches involved in customer service, and the company could really drive this home if it effectively tailors those offerings to reflect younger users' needs and concerns.
