LivePerson up on upgrade as businesses stabilize

LivePerson shares soar on analyst upgrade as businesses stabilize

• On 3:56 pm EDT, Monday September 21, 2009

PHILADELPHIA (AP) -- Shares of LivePerson Inc. soared Monday after an analyst upgraded the stock due to stabilization of the company's enterprise and consumer businesses.

Broadpoint AmTech analyst Brad Whitt upgraded LivePerson to "Buy" from "Neutral" and set a $7 per share price target, noting that the stock is undervalued.

Shares of New York-based LivePerson were up 37 cents, or 7.8 percent, to $5.10 in afternoon trading.

Whitt said LivePerson, which provides online chat services, is the clear leader in the field and as such will benefit when customers invest more money in online marketing.

He believes LivePerson recently snagged two major retailers, in addition to Home Depot Inc., and these clients will boost sales in the second half of the year.

Whitt said he sees more companies moving to online chat as a way to divert calls from their call centers.

The analyst raised his fiscal 2009 and 2010 revenue estimates, to $84.8 million from $84.5 million and to $101.4 million from $98 million, respectively.

He sees LivePerson's consumer business unit becoming positive cash flow in the third quarter. LivePerson charges consumers for expert advice they get through online chats.