Oppenheimer analyst Brian Schwartz maintained a Buy rating on RingCentral (RNG) today and set a price target of $130. The company’s shares closed yesterday at $121.06, close to its 52-week high of $121.28.
Schwartz observed:
“We reiterate RNG as our Top UIT pick and raise our PT to $130 (from $117) after RingCentral reported strong 1Q results, anchored by a record deal size, solid business metrics and higher 2019 growth outlook. Additionally, management announced a multi-year partner extension with Zoom, which is material and a positive data point since Zoom competition was a short case on RNG. On balance, the guidance implies some deceleration, but investors may look through it given the upside trend in recent results. Bottom Line: We believe RingCentral is a primary beneficiary of the replatforming shift for UCaaS and customer service in the SMB market, and we are increasingly confident in the company’s ability to grow its subscriptions business at Tier 1 rates (30%+), while improving operating margins with scale.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 29.4% and a 78.4% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and Trade Desk Inc.
Currently, the analyst consensus on RingCentral is a Strong Buy with an average price target of $116.50, which is a -3.8% downside from current levels. In a report issued on May 2, Merrill Lynch also maintained a Buy rating on the stock with a $135 price target.
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The company has a one-year high of $121.28 and a one-year low of $64.41. Currently, RingCentral has an average volume of 863.5K.
Based on the recent corporate insider activity of 110 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.
