Needham & Company Starts 8x8 (EGHT) at Buy

Needham & Company initiates coverage on 8x8 (NASDAQ: EGHT) with a Buy rating and a price target of $15.00.

Analyst Richard Valera commented, "8x8 is a leading pure-play serving the high-growth Unified Communications as a Service UCaaS) and Contact Center as a Service (CCaaS) markets. The company's shift toward the higher-ARPU, lower-churn mid-market/enterprise (from SMB) and early embrace of the trend toward integrated UCaaS/CCaaS solutions has enabled it to generate consistent 20%-plus top line growth while also demonstrating solid profitability. Acknowledging the strong recent move in EGHT, which has brought it toward the higher end of peer multiples, we'd look to get aggressive on the stock on any pullbacks. Our PT of $15 is equivalent to EV/C2017 Sales of ~4.3x. Key risks to the story include the possibility of increased competition from Microsoft and Cisco as they get more aggressive with cloud-hosted products in the UC space."

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 $13.32 yesterday.

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