Summit Research Starts 8x8 (EGHT) at Buy

Summit Research initiates coverage on 8x8 (NASDAQ: EGHT) with a Buy rating and a price target of $16.00.

Analyst Jonathan Kees commented, "8x8, Inc. (EGHT) is one the largest cloud communications service provider globally servicing business customers who migrate to the cloud. The Unified Communications (UC) market is estimated at $12B worldwide yet has only around 5% cloud pentation. With an integrated package of unified communication (UC), contact center, and analytics features as well as service level agreements (SLAs) and a more developed international service platform, EGHT is uniquely positioned and wins share against larger and established peers like Cisco and Avaya. We launch coverage of EGHT with an Overweight rating and a $16 price target, based on 5.8x FY17 sales of $245M. We see the company riding a multi-year trend, projected at 25% CAGR, that is still in the early stages. Possibly considered a speculative investment due to its recent lack of GAAP profitability and cash burn, EGHT is investing for the future and already showing returns. Our concerns would center on increasing competition potentially slowing returns from scale and profitability, and increasing opex costs."

For an analyst ratings summary and ratings history on 8x8 click here. For more ratings news on 8x8 click here.

Shares of 8x8 closed at $12.50 yesterday.

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