Summit: Time To Buy 8x8

Summit Research issued a company report on 8x8, Inc (NASDAQ: EGHT) initiating coverage on one of the industry leaders of business cloud services. Currently, analysts at Summit rate 8x8 as a Buy with a $16 price target.

Jonathan Kees, Srini Nandury, and Srini Sundararajan, analysts at Summit Research wrote, "8x8, Inc. (EGHT) is one of the largest cloud communications service providers globally servicing business customers who migrate to the cloud...We see the company riding a multi-year trend, projected at 25% CAGR, that is still in the early stages. Possibly considered a speculative investment due to its recent lack of GAAP profitability and cash burn, EGHT is investing for the future and already showing returns."

Analysts at Summit gave two reasons why they see strength in 8x8 in the near term.

1. Growth Potential

Summit believes that with 8x8's large customer base consisting of relationships lasting for many years, the company can leverage existing capabilities to move upmarket into mid-sized enterprises. This has the potential to drive top-line growth and expand margins due to the company's strong operational efficiencies.

2. In-house platforms

Analysts noted that 8x8 has in-house contact centers and analytics capabilities which could give them a competitive advantage over their peers. 8x8 can provide their customers with a complete and integrated solution without the use of third parties which create additional expenses and loss of control over service quality.

Currently, 8x8 is trading at $12.45, down 0.40 percent.