In a report released today, Timothy Horan from Oppenheimer upgraded RingCentral to a Buy, with a price target of $35.00.
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Timothy Horan has given his Buy rating due to a combination of factors that highlight RingCentral’s strong financial performance and strategic improvements. The company reported impressive second-quarter results with subscription revenue and total revenue growth, alongside a significant increase in EBITDA. This financial strength is complemented by an expansion in non-GAAP operating margins and a notable reduction in stock-based compensation as a percentage of revenue.
RingCentral’s strategic initiatives, such as enhancing its product portfolio with AI and strengthening partnerships, have positioned it well in the market, particularly in the contact center space. The company’s ability to consistently outperform guidance and its potential for share repurchase and deleveraging further solidify its investment appeal. These factors, combined with the expectation of substantial free cash flow growth, underpin Horan’s confidence in RingCentral’s future performance and justify the Buy rating.
In another report released today, Needham also maintained a Buy rating on the stock with a $36.00 price target.