Update shared on 21 Nov 2025
Fair value Increased 84%Analysts have significantly raised their price target for eGain, increasing the fair value estimate from $9.50 to $17.50. They cite adjusted expectations for growth and profitability, despite a higher discount rate.
What's in the News
- Oregon Community Credit Union has selected eGain's AI Knowledge Hub and AI Agent software to enhance service delivery for over 700 users, aiming to improve efficiency and user experience across its organization (Client Announcements).
- eGain completed additional share repurchases, bringing the total to 6,384,645 shares, which represents 21.43% of outstanding shares, under its ongoing buyback program. The company has spent $40.27 million to date (Buyback Tranche Update).
- The company raised its buyback authority by $20 million, increasing the total authorization to $60 million (Buyback - Change in Plan Terms).
- eGain provided earnings guidance for the fiscal year ending June 30, 2026, projecting total revenue between $90.5 million and $92.0 million, and GAAP net income of $3.5 million to $5.0 million (Corporate Guidance).
- eGain's board approved amendments and restatements of company bylaws, updating procedures for stockholder meetings, director nominations, and committee authorities (Changes in Company Bylaws/Rules).
Valuation Changes
- Fair Value Estimate: Increased significantly from $9.50 to $17.50, reflecting a notable rise in analyst expectations.
- Discount Rate: Increased from 7.07% to 8.43%, indicating higher perceived risk or return requirements.
- Revenue Growth: Decreased from 6.20% to 3.33%, representing a substantial reduction in the anticipated growth rate.
- Net Profit Margin: Decreased sharply from 1.37% to near breakeven at 0.003%, signaling significantly lower profitability expectations.
- Future P/E Ratio: Increased from 173.1x to 198,254.8x, indicating a steep escalation and potential valuation concerns.
Disclaimer
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