Benzinga | Oct 18, 2021 12:56PM EDT

Morgan Stanley Sees Attractive Entry Point At Five9's Current Valuation, Sees Huge Upside

* Morgan Stanley analyst Meta Marshall upgraded Five9 Inc (NASDAQ:FIVN) to Overweight from Equal Weight with an unchanged price target of $200, implying a 29% upside.

* Marshall sees an attractive entry point at the stock's current valuation ahead of the company's analyst day, which can be a catalyst for the stock.

* While "cognizant" that Five9's setup is more challenging given company forecasts in its Zoom Video Communications Inc (NASDAQ:ZM) merger proxy, that the probability of strategic interest in the near-term is reduced by that scrapped deal and that the company is facing more challenging comps in the second half, she thinks Q3 results could help the stock in its recovery.

* However, Marshall adds that she thinks it will take the analyst day and recovery in some of communication software valuations "to get full [price target] recognition over next few quarters."

* Price Action: FIVN shares traded higher by 1.13% at $155.7 on the last check Monday.