8x8 (EGHT) Should Continue to Work, PT Raised to $30 at Needham

Needham & Company analyst Richard Valera raised the price target on 8x8 (NYSE: EGHT) to $30.00 (from $28.00) after the company reported Revenue of $96.7MM, ahead of consensus of $95.9MM. Non GAAP EPS of ($0.14) beat the ($0.17) consensus and Service revenue of $92.4MM, was up 18% y/y, just ahead of consensus of $91.7MM. Product revenue of $4.3MM was roughly inline w/$4.2MM consensus. Total ARR grew 21% y/y to $332MM.

The analyst stated "the company showed progress in Contact Center and MME/Channel bookings and also acquired Wavecell, providing it entree to the multi-$B CPaaS market, albeit w/margin dilution. While appreciative of the progress being made on the sales and product front, we note Wavecell modestly increases an already considerable expected NG Loss in F2020. That said, given EV/Sales multiples of (admittedly faster growing, more profitable) peers are roughly 2x that of EGHT, we think continued execution against what appears to be more conservative than historical guidance should enable shares to continue to work".

No change to the Buy rating.

You May Also Be Interested In

• Nutanix (NTNX) PT Raised to $80 at Oppenheimer Into EPS
• Jefferies Downgrades IDP Education (IEL:AU) (IDPUF) to Hold
• TD Cowen Reiterates Buy Rating on NVIDIA (NVDA), 'unlikely to move significantly on earnings'