In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on 8X8 (EGHT), with a price target of $22. The company’s shares closed yesterday at $19.31.
Horan wrote:
“FY3Q19 normalized service revenue growth was 22% and should improve to 25% in seven quarters. Negatively, mid-market bookings plummeted to 13% growth from 30%, despite a major step-up in spending. Management believes the sales force and distribution channel did not have the tools to sell and support its new X series bundles, but it has corrected this. EGHT has invested heavily in R&D and sales growth and, for the stock to work, revenue growth needs to ramp and show operating leverage. Shares continue to trade at half the multiple of RNG, but EGHT also have less than half the sales productivity. We are lowering our PT to $22 (from $25) based on 5x FY2020E revenue and supported by our DCF model.”
According to TipRanks.com, Horan is a top 100 analyst with an average return of 14.5% and a 67.7% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
8X8 has an analyst consensus of Moderate Buy, with a price target consensus of $23.
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Based on 8X8’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $21.48 million. In comparison, last year the company had a GAAP net loss of $88.52 million.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EGHT in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
8×8, Inc. operates as a business cloud communications provider which engages in the provision of development and use of Internet protocol voice, video and data communication technologies. It operates through the following geographical segments: Americas and Europe. The firm also offers a SaaS communication solution.
