After Jefferies and SunTrust Robinson gave RingCentral (NYSE: RNG) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Brian Schwartz reiterated a Buy rating on RingCentral today and set a price target of $92. The company’s shares closed yesterday at $74.96.
Schwartz said:
“RingCentral displayed another beat-and-raise quarter and very solid results in 3Q. Highlights included: 1) Increasing revenue beat magnitude; 2) 30%+ growth trends across leading indicators; and 3) ramping cash flow generation. On balance, management guides to PF tax in 2019, which is new, and will result in lower EPS estimates. Bottom Line: We are encouraged by the strong business trends visible in 3Q results, which lend good support to valuation, our thesis, and view that RingCentral is a secular winner and quality SaaS asset. It has an open-ended growth opportunity from its extensible SaaS platform that has ubiquitous appeal in a large business- communications market. The company has a leading technology vision, and 3Q results show that increasing operating leverage is coming through with scale.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 24.7% and a 71.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.
RingCentral has an analyst consensus of Strong Buy, with a price target consensus of $97.20, which is a 29.7% upside from current levels. In a report released today, Jefferies also maintained a Buy rating on the stock with a $105 price target.
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The company has a one-year high of $98.15 and a one-year low of $42.10. Currently, RingCentral has an average volume of 805.8K.
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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.
