As large companies move to IP (internet protocol) communications, 8×8 (EGHT) can win share vs. bigger rivals such as Cisco Systems (CSCO), Avaya and Verizon Communications (VZ), says Summit Redstone Partners, which initiated coverage on 8×8 with a buy rating.
Besides Cisco and Verizon, 8×8 also competes with RingCentral (RNG) and Interactive Intelligence (ININ).
Analyst Jonathan Kees set a price target of 17 on 8×8 stock, which is up more than 20% in 2016 so far. The stock was higher by nearly 2.5%, around 14.50, in midday trading in the stock market today. 8X8 stock broke out of a cup-with-handle base at a 12.05 buy point on May 18, and it is now 20% extended. IBD’s Telecom-Services Integrated group ranks No. 32 out of 197 industry groups.
8×8 reported fiscal Q4 revenue growth of 32% to $57.3 million, topping estimates. Kees forecasts multiyear revenue growth of at least 25% annually.
“8×8 is one the largest cloud communications service providers globally servicing business customers,” said Kees in a research report. “Possibly considered a speculative investment due to its recent lack of GAAP profitability and high operating expenditures, 8×8 is investing for Read Full Article
Source: Technology – IBD