B.Riley FBR analyst Josh Nichols reiterated a Hold rating on 8X8 (NASDAQ: EGHT) today and set a price target of $16. The company’s shares opened today at $18.05.
Nichols commented:
“8×8 (EGHT) reported 4Q18 (Mar) revenue of $79M, which came in above our $78M projection as well as consensus $77M. However, pro forma EPS of $(0.03) missed our and consensus $0.00 projection due to elevated investments as the company works to accelerate its service revenue growth rate. Management reiterated its target of 25% service revenue growth exiting 4Q19 (excluding DXI) but shares trade down 16% on the news that the company plans to increase headcount by 30% this fiscal year. FY19 revenue guidance of $347M-$352M (up 18% Y/Y at the midpoint) outpaced our prior $338M projection, but pro forma pre-tax income of $(13M)- $(17M) came in well below our $13.2M projection, despite an anticipated $11M-$13M benefit from the capitalization of certain sales and commission expenses under ASC 606.”
According to TipRanks.com, Nichols is a 5-star analyst with an average return of 27.9% and a 53.1% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.
Currently, the analyst consensus on 8X8 is Moderate Buy and the average price target is $22.86, representing a 26.6% upside.
In a report issued on May 25, Merrill Lynch also downgraded the stock to Hold with a $23 price target.
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The company has a one-year high of $23.05 and a one-year low of $10.30. Currently, 8X8 has an average volume of 735.7K.
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8×8, Inc. operates as a business cloud communications industry 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, Europe and Asia Pacific. The firm also offers a SaaS communication solution.
