EGHT: Underlying Stabilization And Improved Capital Structure Will Drive Upside Potential

Analysts have raised their fair value price target for 8x8 from $2.36 to $2.50 per share, citing signs of operational stabilization and improved growth metrics as key factors supporting the revised outlook.

Analyst Commentary

Recent analyst actions around 8x8 reflect a nuanced outlook, highlighting both notable improvements and persistent areas of concern as the company works to regain momentum.

Bullish Takeaways

• Bullish analysts note accelerating growth in the company’s legacy business segments. This is seen as evidence of underlying operational stabilization.
• The company’s improved capital structure is viewed as supporting ongoing efforts to boost shareholder value and long-term financial health.
• Some analysts believe that positive revenue trends excluding Fuze indicate that business growth may be sustainable. This bolsters confidence in near-term execution.
• Rising price targets signal that analysts are increasingly optimistic about the company’s potential to deliver improved returns for investors if current trends persist.

Bearish Takeaways

• Bearish analysts remain cautious due to the discontinuation of some analyst coverage. This may signal uncertainty or limited visibility into future performance.
• There are ongoing concerns that the company’s recent improvements could stall if operational momentum is not maintained.
• Some caution persists around the sustainability of growth, especially as competition in the sector remains intense and macroeconomic conditions could impact demand.
• Analysts point to reliance on positive trends in ex-Fuze performance. They caution that setbacks in this area could weigh on future valuation upside.

What's in the News

• 8x8 now offers native support for widely used Mitel SIP desk phones. This enables organizations to access the 8x8 platform without replacing hardware and expands enterprise voice capabilities. (Product-Related Announcements)
• Workforce Management is now included as a standard feature in all 8x8 Contact Center packages. This allows organizations to forecast, schedule, and staff across channels at no extra cost. (Product-Related Announcements)
• 8x8 has issued new earnings guidance, projecting third quarter revenue between $177 million and $182 million, and fiscal year 2026 revenue between $712 million and $726 million. (Corporate Guidance, New/Confirmed)
• 8x8 has launched Omni Shield Self-Service, a no-code SMS fraud protection tool built into 8x8 Connect. This tool is aimed at helping businesses detect and block SMS threats in real time. (Product-Related Announcements)
• 8x8 and Modica Group have formed a reseller partnership to expand omnichannel CX across Asia Pacific. The partnership will begin with integrating 8x8 Jitsi as a Service into Modica's OMNI CPaaS platform. (Client Announcements)

Valuation Changes

• The consensus analyst price target has risen slightly from $2.36 to $2.50 per share.
• The discount rate has dropped modestly from 12.32% to 12.07%.
• Revenue growth is now estimated significantly higher, increasing from 13.96% to 37.83%.
• The net profit margin has decreased marginally, moving from 13.09% to 12.79%.
• The future P/E ratio has climbed from 5.48x to 6.22x.