LPSN - LivePerson surges as Craig Hallum upgrades after Q2 results new CEO
2023-08-09 07:53:34 ET
LivePerson ( NASDAQ: LPSN ) shares surged nearly 20% in pre-market trading on Wednesday as investment firm Craig Hallum upgraded the software company after it reported second-quarter results and named its CFO John Collins as its interim CEO.
"After mass chaos over the past several questions, the LPSN business is settling out and the forward view gaining some clarity," analyst Jeff Van Rhee wrote in an investor note.
Van Rhee, who moved his rating to buy from hold and boosted his price target to $7 from $5, added that he is "encouraged" by the technical strength of LivePerson's ( LPSN ) core products and the new voice products, which have "sparked a lot of customer interest and materially expanded the [total addressable market]."
"We see room to get back to the mid-teens revenue growth or greater, on double digit operating margins over time," Van Rhee explained.
In addition to Collins taking on the top spot, replacing former CEO Robert LoCascio, LivePerson ( LPSN ) reported second-quarter results that topped expectations.
For the period ending June 30, the New York City-based company earned 12 cents per share as revenue declined 26.4% year-over-year to $97.52M. It also said that adjusted EBITDA during the quarter was above the top end of its guidance at $12.8M.
Analysts were expecting the company to lose 35 cents per share and generate $96.86M in sales.
Looking to the rest of 2023, LivePerson ( LPSN ) expects sales to be between $388M and $400M, excluding the contribution from Kasamba in the first-quarter.
Analysts are largely cautious on LivePerson ( LPSN ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a HOLD . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates LPSN a SELL .
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LivePerson surges as Craig Hallum upgrades after Q2 results, new CEO