- Needham analyst Ryan Koontz reiterated 8×8 Inc (NYSE:EGHT) with a Buy and lowered the price target from $8 to $6.
- EGHT’s 2Q23 revenue was in line with consensus, while EPS beat expectations on improving and better than expected margins.
- 2H23 revenue guidance was broadly in line (excluding FX), while the operating margin continues to improve.
- SMB ARR returned to MSD% growth, while Enterprise was ~flat impacted by FX. The proliferation of Teams in the Enterprise has put a lid on UCaaS.
- Recently restructured debt and improving cash flow removes potential near-term risk and likely boost the stock. At the same time, the company accelerated its pivot into the contact center market, where 75% of its R&D spend is focused.
- He increased his FY23 and FY24 EPS estimates.
- Mizuho analyst Siti Panigrahi maintained 8×8 with a Neutral and cut the price target from $6 to $5.
- While 8×8 reported an in-line September quarter for total revenue, management lowered full-year FY23 revenue guidance due to FX headwinds and the worsening macro backdrop that continue to weigh on top-line growth.
- While he cut his revenue growth, he was encouraged by the continued focus on improving margins and expected the company to achieve a 10% operating margin in the back half of FY24.
- He cut both his forecasts and price target.
- Wells Fargo analyst reaffirmed 8×8 with an Underweight and reduced the price target from $5 to $4.
- Price Action: EGHT shares traded higher by 18.18% at $4.03 on the last check Friday.
Winnebago Industries, La-Z-Boy And 3 Stocks To Watch Heading Into Wednesday
With U.S. stock futures trading lower this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:
