Needham analyst Joshua Reilly has maintained their bullish stance on RNG stock, giving a Buy rating today.
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Joshua Reilly has given his Buy rating due to a combination of factors that highlight RingCentral’s strong performance and strategic developments. The company reported a robust second quarter, with notable success in the small and medium-sized business (SMB) sector and global service providers (GSPs), while maintaining steady performance in the enterprise segment. This strong showing is complemented by the company’s new product annual recurring revenue (ARR), which is on track to surpass $100 million by the end of 2025, aligning with previous expectations.
Another key factor in Reilly’s rating is the renewal of the partnership with NICE inContact, which continues under the same terms as before. This renewal is likely to be viewed positively by investors, as it secures ongoing collaboration in unified communications as a service (UCaaS) and contact center as a service (CCaaS) deals. Additionally, RingCentral’s efforts to reduce its debt, evidenced by the repayment of $106 million, and the year-over-year growth in free cash flow per share further strengthen its financial position. The reduction in stock-based compensation guidance also underscores the company’s effective management of stock grants, supporting its financial growth objectives.
Reilly covers the Technology sector, focusing on stocks such as Bandwidth, ZoomInfo Technologies, and Clear Secure. According to TipRanks, Reilly has an average return of 1.9% and a 44.13% success rate on recommended stocks.
In another report released today, Oppenheimer also upgraded the stock to a Buy with a $35.00 price target.