optimistic- Thomas Weisel (2.92 +1.17) -Update-
Thomas Weisel says the Bellsouth and 8x8 private-label agreement, while the firm is positive on such partnerships, they do not believe that the opportunity with BellSouth offers further upside from the co's current valuation, and thus believe shares of EGHT are fairly valued. The firm questions the longevity of the arrangement and believe that Bellsouth is in the process of developing its own VoIP service, potentially diminishing the need for the Packet8 suite. They believe that Bellsouth is using 8x8 primarily as a stepping stone to jump start its own digital voice products and that this initiative is primarily a defense tactic to prevent churn and combat the influx of cheap VoIP players in the market, and do not believe that Bellsouth will be pushing the offering, as the service would essentially cannibalize higher ARPU services. Going forward, the firm believes that any significant net adds positively affecting financial results in the short term will abate and that 8x8 will ultimately be competing head to head with Bellsouth
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