What 6 Analyst Ratings Have To Say About 8x8

6 analysts have shared their evaluations of 8x8 (NASDAQ:EGHT) during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $2.53, a high estimate of $3.50, and a low estimate of $1.50. Observing a downward trend, the current average is 5.6% lower than the prior average price target of $2.68.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive 8x8. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Michael Turrin |Wells Fargo |Lowers |Underweight | $1.50|$2.00 | |Meta Marshall |Morgan Stanley |Lowers |Underweight | $1.90|$2.60 | |Siti Panigrahi |Mizuho |Lowers |Underperform | $2.00|$2.50 | |Ryan Macwilliams |Barclays |Raises |Equal-Weight | $3.00|$2.50 | |Ryan Koontz |Needham |Raises |Buy | $3.50|$3.00 | |Catharine Trebnick |Rosenblatt |Lowers |Buy | $3.30|$3.50 |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to 8x8. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of 8x8 compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for 8x8's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of 8x8's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Unveiling the Story Behind 8x8

8x8 Inc provides contact-center-as-a-service and unified-communications-as-a-service software applications to approximately 2.5 million users. The company's unified platform enables omnichannel communication to assist employees in communicating across voice, video, text, chat, and contact centers. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.. Geographically, it derives a majority of revenue from the United States.

8x8: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: 8x8's revenue growth over a period of 3M has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -1.17%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: 8x8's net margin is impressive, surpassing industry averages. With a net margin of 1.69%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): 8x8's ROE stands out, surpassing industry averages. With an impressive ROE of 2.71%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): 8x8's ROA stands out, surpassing industry averages. With an impressive ROA of 0.42%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: 8x8's debt-to-equity ratio surpasses industry norms, standing at 3.77. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.