eGain Corporation (EGAN) is having a phenomenal year, with its stock up 188% year to date. Analysts are taking note, and Ladenburg Thalman is the first to issue a downgrade as the company's shares have reached "overvalued" territory. This, coupled with strong insider selling, is signalling that eGain has hit a top and will be heading lower in the near-term.
eGain bills itself as a leading provider of cloud-based and on-site customer engagement solutions. In other words, it offers solutions to companies that allow them to interact with their customers through the different multichannel points. The picture looks like this:
How the bulls are justifying the valuation
Outlined below are some of the bright spots...
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