Wells Fargo analyst Michael Turrin maintained a Sell rating on 8X8 (EGHT – Research Report) yesterday and set a price target of $2.00.
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Michael Turrin has given his Sell rating due to a combination of factors affecting 8X8’s financial outlook. The company’s recent quarterly results were impacted by foreign exchange headwinds and the ongoing migration of Fuze, which have obscured its core financial performance. The ambition to return to growth in fiscal year 2026 is expected to pressure margins, suggesting a challenging competitive landscape.
Additionally, while there are some positive movements such as reductions in debt and growth in certain revenue streams, the overall outlook remains clouded. The company’s operating margins have been declining and are projected to contract further as it seeks growth. Furthermore, 8X8’s shares are trading at a discount compared to peers due to its slowing organic growth and competitive challenges, leading to a price target that reflects these risks.
In another report released today, Morgan Stanley also maintained a Sell rating on the stock with a $2.60 price target.