Critical Insights From 8x8 Analyst Ratings: What You Need To Know

Throughout the last three months, 6 analysts have evaluated 8x8 EGHT, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $2.67, a high estimate of $4.00, and a low estimate of $1.50. Highlighting a 15.77% decrease, the current average has fallen from the previous average price target of $3.17.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of 8x8 by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to 8x8. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of 8x8 compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for 8x8's future value. Examining the 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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Get to Know 8x8 Better

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.

Financial Milestones: 8x8's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, 8x8 faced challenges, resulting in a decline of approximately -0.71% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: 8x8's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -5.78%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.96%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): 8x8's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.36%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: 8x8's debt-to-equity ratio stands notably higher than the industry average, reaching 4.57. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

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.

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