In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on RingCentral (NYSE: RNG), with a price target of $79. The company’s shares closed yesterday at $73.20, close to its 52-week high of $73.60.
Schwartz wrote:
“RingCentral’s business fundamentals have reached new highs and support a price target increase. The company reported 1Q ARR metrics, revenues, margins, EPS, cash flow and guidance above consensus. RingCentral’s extensible SaaS platform is proving its ubiquitous appeal in SMB business communications, and we are comfortable with the business trajectory given the current record SMB optimism levels likely foretell a cyclical pickup. Bottom Line: RingCentral’s outsized beat-and-raise in 1Q are impressive and stand out versus most SaaS assets reporting moderating beat- and-raise magnitudes. The results support the current business trends and opinion that investors need to own RNG shares for the long haul because of an attractive open-ended growth opportunity and an increasing profit margin trajectory. Reiterate Outperform, raise target to $79 (from $66).”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.8% and a 79.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.
Currently, the analyst consensus on RingCentral is Moderate Buy and the average price target is $67.20, representing a -8.2% downside.
In a report released today, Jefferies also maintained a Buy rating on the stock with a $84 price target.
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Based on RingCentral’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $6.09 million. In comparison, last year the company had a GAAP net loss of $7.31 million.
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RingCentral, Inc. engages in the provision of global enterprise cloud communications and collaboration solutions. Its solutions provide a single user identity across multiple locations and devices, including smartphones, tablets, PCs and desk phones; and allow for communication across multiple modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax. It sells its products under the RingCentral Professional, RingCentral Glip, and RingCentral Fax brands. The company was founded by Vlad Vendrow and Vladimir Shmunis in 1999 and is headquartered in Belmont, CA.
