Morgan Stanley Updates Five9 (FIVN) Outlook as AI Fears Ease for SaaS Sector

Group 1: Company Overview - Five9 Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers, offering a customer experience (CX) platform that includes a suite of applications for customer service, sales, and marketing functions [4]. Group 2: Analyst Ratings and Price Targets - Morgan Stanley lowered its price target for Five9 to $26 from $30 while maintaining an Equal Weight rating, noting that SaaS stocks lagged behind the broader software and technology sectors in 2025 [1]. - Barclays analyst Raimo Lenschow reduced the price target on Five9 to $25 from $29, keeping an Overweight rating, as part of a generally positive outlook for the software sector despite the lowered targets [3]. Group 3: Market Outlook - There is growing evidence that AI-related risks may be less severe than previously anticipated, leading to a more positive outlook for the SaaS group in 2026 [2]. - Despite the positive outlook, there is a persistent lack of widespread upward revisions in corporate spending, leading firms to remain selectively opportunistic [2]. - Barclays cited stable macroeconomic conditions and IT spending, along with low stock valuations and the sector being currently out of favor, as reasons for a favorable setup in the coming year [3].