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Why RingCentral Shares Are Trading Lower Today

Published 06/07/2022, 20:17
Updated 06/07/2022, 21:10
© Reuters.  Why RingCentral Shares Are Trading Lower Today
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  • Needham analyst Ryan Koontz downgraded RingCentral, Inc (NYSE: RNG) from Buy to Hold.
  • His recent fieldwork indicates the company's enterprise growth could continue to slow to the point where 2023 estimates now appear at risk.
  • Since 4Q21, he worried that a softening pipeline could impact RNG's enterprise revenue growth and limit the magnitude of revenue beats if new strategic partner sales did not quickly gain momentum.
  • It has become clear that Microsoft Corp (NASDAQ: NASDAQ:MSFT) Teams' enterprise footprint up-sell to voice represents an "increasing headwind" to RingCentral's growth.
  • His recent research indicates that new Teams' sell-in dialing plan opportunities now reach below $5 per month per seat.
  • Therefore, he lowered his 2023 estimates for revenue growth from 24% to 22% and EPS from $2.48 to $2.29 and downgraded the stock.
  • Price Action: RNG shares traded lower by 9.82% at $55.31 on the last check Wednesday.
Latest Ratings for RNG DateFirmActionFromTo
Feb 2022Evercore ISI GroupMaintainsOutperform
Feb 2022JP MorganMaintainsOverweight
Feb 2022NeedhamMaintainsBuy
View More Analyst Ratings for RNG

View the Latest Analyst Ratings

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