RBC Capital Starts RingCentral (RNG) at Outperform

RBC Capital analyst Rishi Jaluria initiates coverage on RingCentral (NYSE: RNG) with a Outperform rating and a price target of $85.00.

The analyst comments: “We are initiating coverage on RingCentral, Inc. (RNG) with an Outperform rating and $85 price target, based on its market leadership position in core voice, platform expansion into contact center and AI, and commitment to margin expansion and shareholder returns. RingCentral is a leading provider of UCaaS (Unified Communications as a Service), serving ~600,000 businesses globally with ~$2.8B in ARR.

UCaaS is competitive, but we see it serving an infrastructure-esque role in enterprises, making it less susceptible to AI displacement risk than the market fears. Growth has slowed from the COVID peak, yet RNG's defensive mid-single-digit growth has helped the name rally as durability proved out. We see potential for slight acceleration from here, while the market prices the stock at low- to no-growth levels.”

For an analyst ratings summary and ratings history on RingCentral click here. For more ratings news on RingCentral click here.

Shares of RingCentral closed at $72.58 yesterday.

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