Oppenheimer analyst Brian Schwartz reiterated a Buy rating on RingCentral (RNG) today and set a price target of $117. The company’s shares closed yesterday at $99.87, close to its 52-week high of $103.49.
Schwartz observed:
“We reiterate our Outperform rating and raise our PT to $117 from $101 after RingCentral generated another beat-and-guide-above quarter of business results and solid business metrics in 4Q:2018. The 4Q report reinforces our view that RingCentral’s fundamentals outlook could look increasingly positive relative to other SaaS SMB/midmarket-focused names this year. Bottom Line: Management has time and again demonstrated its ability to execute and deliver on the initiatives laid out at its June 2018 investor day: Driving strong, durable and profitable growth, energizing the product portfolio through M&A and internal-R&D innovations, and taking full advantage of channel expansion and bad legacy competition to gain share. While RNG’s valuation is high, we think it is warranted given its category leadership, large TAM, and rising productivity.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.4% and a 76.3% success rate. Schwartz covers the Technology sector, focusing on stocks such as Salesforce.com, MiX Telematics, and Trade Desk Inc.
Currently, the analyst consensus on RingCentral is a Moderate Buy with an average price target of $98.60, representing a -1.3% downside. In a report issued on February 7, Merrill Lynch also maintained a Buy rating on the stock with a $110 price target.
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Based on RingCentral’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $9.52 million. In comparison, last year the company had a GAAP net loss of $6.09 million.
Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock.
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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.
