Mizuho has revised its price target for 8x8 Inc. (EGHT, Financial), a player in the software-as-a-service industry, reducing it from $2.50 to $2. This adjustment comes as part of a broader reassessment of the software sector ahead of anticipated first-quarter earnings reports.
Despite this reduction, Mizuho maintains an Underperform rating on 8x8 shares. The revision is attributed to the impact of recent multiple compressions within the software market. Nevertheless, the firm highlights that the recent selloff might offer a promising opportunity for investors looking to enter the market.
Looking ahead, Mizuho anticipates strong performance in the upcoming Q1 reports across the software sector. However, they also predict that company management might adopt a more cautious tone when discussing fiscal year projections. Importantly, the firm believes that tariffs are unlikely to significantly impact the core fundamentals of the software-as-a-service model.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for 8x8 Inc (EGHT, Financial) is $3.17 with a high estimate of $4.25 and a low estimate of $2.00. The average target implies an upside of 85.09% from the current price of $1.71. More detailed estimate data can be found on the 8x8 Inc (EGHT) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, 8x8 Inc's (EGHT, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for 8x8 Inc (EGHT, Financial) in one year is $2.96, suggesting a upside of 73.1% from the current price of $1.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the 8x8 Inc (EGHT) Summary page.
