8×8 price target lowered to $4 from $7 at B. Riley

B. Riley lowered the firm’s price target on 8×8 (EGHT) to $4 from $7 and keeps a Buy rating on the shares ahead of the Q2 earnings report on November 4. An anticipated return to year over year growth later this fiscal year and robust free cash flow make shares attractive, the analyst tells investors in a research note. In addition, the new lower-interest credit facility, which does not include any prepayment penalties, will foster significant unmodeled debt paydowns that improve profitability and unlock equity value over time, the firm says.