William Power, an analyst from Robert W. Baird, maintained the Hold rating on RingCentral (RNG – Research Report). The associated price target is $32.00.
William Power’s rating is primarily based on a number of factors, including the competitive environment, the company’s growth rate, and its debt levels. He acknowledges RingCentral’s development of new products, RingCX and RingCentral Events, which should enhance its platform capabilities. However, he anticipates that these additions will take time to significantly impact the business.
Furthermore, Power expressed concerns about the intensifying competition in the market, the slowing pace of RingCentral’s growth, and the company’s substantial debt levels. Despite these challenges, he recognized the firm’s improving margins and robust free cash flow. His target price of $32 is based on a 13x 2024E free cash flow, which is lower than the UCC group, reflecting his concerns about the aforementioned issues.
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RingCentral (RNG) Company Description:
Founded in 1999, California-based RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company’s products include RingCentral Professional, RingCentral Office, RingCentral Glip, and RingCentral Fax.
Read More on RNG:
- RingCentral price target lowered to $55 from $65 at BofA
- RingCentral price target lowered to $35 from $38 at Evercore ISI
- RingCentral price target lowered to $32 from $37 at Piper Sandler
- RingCentral (NYSE:RNG) Soars on Q3 Earnings Beat and Upbeat Guidance
- RingCentral price target lowered to $32 from $37 at Baird