LivePerson Jumps After Getting Price Target Increases From Analysts

LivePerson is seen benefiting from the trend toward messaging over voice, a trend accentuated by the coronavirus pandemic.
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Shares of LivePerson  (LPSN) - Get Report soared Wednesday as three analysts raised their share-price targets for the conversational commerce company after it posted a strong first-quarter earnings report.

The company signed 130 deals in the quarter, an increase of 10% from a year earlier, including 56 new and 74 existing customer contracts. LivePerson’s revenue climbed 18% in the quarter from a year ago.

B. Riley boosted its share-price target to $36 from $31, confirming its buy rating. Jefferies went to $33 from $27, also reiterating its buy rating. Mizuho went to $40 from $30, reiterating its buy rating too.

LivePerson shares recently traded at $31.99, up 36.75%.

The company’s big first-quarter increase in messaging volume as the coronavirus pandemic began to rage “further highlights the value proposition of messaging vs. [phone] calls,” Jefferies analyst Samad Samana wrote in a report.

The “rapid shift from large contact centers” to a distributed work-from-home environment is boosting the company, he said. And customer adoption cycles are shrinking “to months from years.”

The fact that the company kept the top end of its 2020 guidance represents “a sign of confidence,” Samana said.

Meanwhile, Roth analyst Richard Baldry has a buy rating with a $53 price target on shares of LivePerson. The usage growth for LivePerson’s messaging platform shows “a sentiment tidal shift in favor of messaging [over voice], which should bolster its long-term growth,” he wrote in a report cited by Bloomberg.

LivePerson’s shares have slumped 26% over the past three months, even including the surge Wednesday.