In a report released today, Joshua Reilly from Needham maintained a Buy rating on RingCentral, with a price target of $36.00.
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Joshua Reilly has given his Buy rating due to a combination of factors including RingCentral’s strong financial performance in the third quarter, where they exceeded revenue expectations by 60 basis points. The company’s ongoing advancements in AI technology, such as the AIR virtual receptionist, have been successful in attracting new customers, showcasing their innovative edge. Despite a slowdown in Enterprise ARR growth, Reilly anticipates that the decline will stabilize as the effects of COVID-related down-sell diminish, which could serve as a positive catalyst for the stock. Additionally, RingCentral’s strategic capital management, including share buybacks, supports the Buy rating.