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RingCentral transferred with Buy rating at Needham

Needham kept a Buy rating on RingCentral (RNG) with a $36 price target following a transfer in coverage. RingCentral is well positioned to expand its “strong” unified communications as a service market share in voice, while creating new artificial intelligence based products that can sell into the small business market, where it has the highest growth rate, the analyst tells investors in a research note. Further, the firm believes the financial engineering underway, including increasing free cash flow margins, while paying down debt will lead to a higher multiple for shares.

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