Needham & Company reiterated a Buy rating on 8x8 (NASDAQ: EGHT), and raised the price target to $17.00 (from $15.00), following the company's 1Q earnings report. Revenue of $60.0MM exceeded consensus of $57.8B, and NG EPS of $0.06 beat the $0.03 consensus.

Analyst Richard Valera commented, "We continue to be fans of EGHT's position as a pure-play, integrated UCaaS/CCaaS player, shifting toward the higher-ARPU, lower-churn midmarket/enterprise (from SMB). In its F1Q17, EGHT delivered solid top and bottom line upside reflecting strong underlying business momentum and success in its push towards the mid-market. While we expect some may find the lack of flow-through of the 1Q upside into the full-year guide (which was reiterated) disappointing, we see it as pragmatic given expected FX headwinds. While leaving our estimates largely unchanged, we bump our PT to $17 (was $15), or 5.0x EV/C2017, to reflect recent peer multiple expansion and would look for any pullbacks to get aggressive on the shares."

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 $14.59 yesterday.