- Needham repeated analyst Ryan Koontz 8×8 inc EGHT with a purchase and lowered the price target from $8 to $6.
- EGHT’s 2Q23 sales were in line with consensus while earnings per share beat expectations Improvement and better than expected margins.
- H2 2023 revenue guidance was broadly in line (excluding FX), while operating margin continues to improve.
- SMB ARR returned to MSD% growth while Enterprise was little affected by exchange rates. The proliferation of teams across the enterprise put an end to UCaaS.
- Recent debt restructuring and improved cash flows remove potential near-term risks and should boost the stock. At the same time, the company accelerated its focus on the contact center market, where 75% of its R&D spend is focused.
- He increased his EPS estimates for FY23 and FY24.
- Mizuho Analyst Siti Panigrahi kept 8×8 with Neutral and lowered the price target to $5 from $6.
- While 8×8 reported a ongoing September quarter for total sales, management lowered full year FY23 sales guidance due to headwinds in foreign exchange rates and the deteriorating macroeconomic backdrop, which continue to weigh on sales growth.
- While paring back on its revenue growth, he was heartened by the company’s continued focus on improving margins and expected the company to achieve a 10% operating margin in the second half of FY24.
- He lowered both his forecasts and price target.
- Wells Fargo Analyst reiterated 8×8 with an underweight and reduced price target to $4 from $5.
- Price promotion: EGHT shares traded up 18.18% to $4.03 on the last check Friday.
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