Upgrade to SI Premium - Free Trial

8x8 (EGHT) PT Raised to $50 at Oppenheimer After Topping Street High Revenue

January 29, 2021 9:17 AM

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."


Analyst Comments Analyst EPS Change Analyst EPS View Analyst PT Change