The street is overlooking LivePerson, Inc. (NASDAQ: LPSN)’s mobile commerce opportunity, according to a new analyst report.
Oppenheimer analyst Koji Ikeda upgraded LivePerson from Perform to Outperform and set a $31 price target.
LivePerson is well-positioned to take share in a large business-to-consumer messaging opportunity that is disrupting the contact center, Ikeda said in the Thursday upgrade note.
“Organizations around the world are under pressure to rethink and retool legacy technologies with next-generation customer engagement applications, like LivePerson, to better engage, retain and generate revenue from the end consumer,” the analyst said.
5 Catalysts For Outperformance
Ikeda named the following as catalysts for LivePerson:
- An underappreciated mobile commerce opportunity that can drive upside to estimates.
- A good entry point following a pullback.
- Several catalysts including a potential growth acceleration story in 2019 to 20 percent.
- A strong installed base monetization opportunity.
- Good execution trend over the FTM
The installed base has the potential to drive much of the upside needed to accelerate the business to 20-percent growth in the near-term, the analyst said.
With job postings at a three-year high, Ikeda said end market demand is healthy and the business is investing to increase sales capacity, a positive sign for future growth trends.
LivePerson is trading at a 42-percent valuation discount to the SaaS industry average, translating to a favorable risk-reward profile, the analyst said.
The bottom line for LivePerson is that as management delivers execution in upcoming quarterly results, it will increase investor recognition and drive a re-rating of the company’s valuation multiples toward the SaaS industry average over time, according to Oppenheimer.
LivePerson shares were up 3.46 percent at $22.11 at the close Thursday.
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Latest Ratings for LPSN
|Dec 2018||Summit Insights Group||Initiates Coverage On||Buy|
|Aug 2018||B. Riley FBR||Maintains||Buy||Buy|
View More Analyst Ratings for LPSN
View the Latest Analyst Ratings
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