Craig-Hallum downgrades RingCentral to Hold, lowers price target to $38

As previously reported, Craig-Hallum analyst George Sutton downgraded RingCentral to Hold from Buy with a price target of $38, down from $52. This quarter saw a change of leadership as founder and long-tenured CEO Vlad Shmunis is stepping up to Executive Chairman, heir-apparent Mo Katibeh is leaving and Tarek Robbiati was appointed as CEO, the firm notes. At the same time, after years of promoting the logic of its integrated contact center offering with NICE InContact, the company is finally ready to enter the CCaaS market itself with a new offering at a “disruptive price,” Craig-Hallum adds. With recent product introductions that mirror those of competitors, it feels to the firm that RingCentral isn’t leading the market, it is simply joining the crowd.