Oppenheimer analyst Timothy Horan raised the price target on 8x8 (NYSE: EGHT) to $50.00 (from $29.00) after the company beat the Street-high December-quarter revenue growth estimate by 170 bps.

The analyst maintained an Outperform rating, stating "Cloud-based communications (UCaaS, CPaaS, Contact Center) is a lightly penetrated $100B+ market that has seen a step-function increase in demand as a result of COVID-19. The new management team will move away from less lucrative revenue streams (SMB) to focus on higher-growth enterprise segments. EGHT has built a unique, world-class cloud communications platform, and the new management team will reform its go-to-market strategy, which will enable much stronger, profitable growth in a year or so. This should help EGHT tighten the current valuation gap with market leader RNG, which trades at ~25x revenues vs. EGHT at 6x, despite similar business models and expected growth profiles. We lower estimates while the company refocuses."