UPDATE: Needham & Company Starts 8x8 (EGHT) at Buy
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(Updated - June 21, 2021 4:18 PM EDT)
Needham & Company analyst Ryan Koontz initiates coverage on 8x8 (NYSE: EGHT) with a Buy rating and a price target of $32.00.
The analyst commented, "We initiate coverage of EGHT with a Buy rating and a PT of $32. We see EGHT as a UCaaS segment challenger with increasing momentum. EGHT's strong position in UCaaS, which is benefiting from cloud adoption, digital transformation, and work location flexibility, is complemented by bundled in-house CCaaS and video collaboration products. We see the strong EGHT technology stack as its primary competitive weapon as it retools its enterprise GTM under new CEO David Sipes, who we expect to significantly improve execution.
We view consensus revenue estimates as achievable and think its unlikely that the easing of pandemic restrictions will slow global UCaaS adoption. With the recent pull-back in EGHT stock, we see its current valuation as an attractive entry point. Our $32 price target is based on an EV/Sales multiple of 5.6x our F23 estimate."
Shares of 8x8 closed at $26.24 yesterday.
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