8x8 (EGHT) PT Raised to $3 at Rosenblatt
Rosenblatt analyst Catharine Trebnick raised the price target on 8x8 (NASDAQ: EGHT) to $3.00 (from $2.75) while maintaining a Buy rating.
The analyst commented: "8x8, Inc. (EGHT) delivered a strong Q4 FY26, beating guidance across key metrics and capping a year of steady execution that reinforced our conviction in the story. Total revenue of $185.2M and service revenue of $180.2M (a record) both came in above the high end of guidance, with core service revenue accelerating to approximately 8% Y/Y growth as the company laps the Fuze headwind. Profitability was also impressive, with operating margin of 10.7% above guidance and CFFO of $14.4M ahead of the $10M $12M range, marking the company’s 21st consecutive quarter of positive cash flow. Looking ahead, management’s FY27 outlook was constructive, and we are raising our estimates accordingly, with FY27 revenue moving to $740M and EPS to $0.36, both comfortably within guidance. We are raising our price target to $3.00 from $2.75, reflecting approximately 0.9x our CY27e Sales of $737M. At current levels, 8x8 trades at just 0.7x EV/CY27e sales, a significant discount to the peer group average of 1.7x. We believe sustained execution, accelerating usage-based revenue growth, improving operating consistency, continued deleveraging, and increasing demand for integrated UC/CC/CPaaS platforms support a modest multiple expansion over time."