Information Provided By:
Fly News Breaks for February 11, 2020
Feb 11, 2020 | 08:08 EDT
Oppenheimer analyst Brian Schwartz raised his price target for RingCentral to $250 from $210 saying the company's "strong" fourth quarter and outlook for 2020 lend good support to its valuation. The analyst believes RingCentral's efficient go-to-market strategies, growing traction upmarket and with large MSAs, and its best-of-breed SaaS platform applications, which are core competitive differentiators, are resonating with the end-market and foretell future share gains for many years to come. He highlights that RingCentral's ARR and subscription revenue sustained 30%-plus growth rates in 2019 despite a larger scale for the company. This rate should enable the company to generate fast SaaS growth in 2020 and over the medium-term, he adds. Schwartz has an Outperform rating on the shares.