Analysts Have Conflicting Sentiments on These Technology Companies: 8X8 (NYSE: EGHT) and HealthStream (NASDAQ: HSTM)

Analysts have been eager to weigh in on the Technology sector with new ratings on 8X8 (EGHTResearch Report) and HealthStream (HSTMResearch Report).

8X8 (EGHT)

Stephens analyst Dmitry Netis assigned a Buy rating to 8X8 today and set a price target of $27. The company’s shares closed yesterday at $24.62, close to its 52-week high of $25.93.

Netis wrote:

“We believe Wavecell fits nicely into 8×8’s product suite, as CPaaS functionality was the last missing piece required to complete 8×8’s integrated cloud platform, which we have speculated previously might be bought to shorten time to market. With the valuation of CPaaS pure-play EV/Sales, we see the acquisition as accretive to both 8×8’s revenue growth and multiple.”

Netis has an average return of 24.4% when recommending 8X8.

According to TipRanks.com, Netis is ranked #268 out of 5053 analysts.

Currently, the analyst consensus on 8X8 is a Moderate Buy with an average price target of $23.71, a -3.7% downside from current levels. In a report released today, Northland Securities also maintained a Buy rating on the stock with a $28 price target.

See today’s analyst top recommended stocks >>

HealthStream (HSTM)

Barrington analyst Vincent Colicchio maintained a Hold rating on HealthStream today. The company’s shares closed yesterday at $26.55.

Colicchio noted:

“We expect HealthStream to report Q2/19 non-GAAP EPS of $0.08, which exceeds the FactSet consensus of $0.07. Our EPS forecast represents a year-over- year decline of 28% (vs. $0.11) and a sequential decline of 45% (vs. $0.15). The year-over- year and sequential declines should largely be driven by lower gross margins and higher indirect operating costs as a portion of revenue. The latter is driven by our expectation of increased investment in sales and product development.”

According to TipRanks.com, Colicchio is a 1-star analyst with an average return of -1.6% and a 50.5% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Computer Task.

Currently, the analyst consensus on HealthStream is a Hold with an average price target of $26.

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