Morgan Stanley downgraded RingCentral to Equal Weight from Overweight with a price target of $42, down from $49. The “unexpected” CEO transition, combined with secular headwinds, brings valuation headwinds for RingCentral shares near term, the analyst tells investors in a research note. The company’s Q2 results were largely as expected, but investors need to see a path to revenue reacceleration for the shares to experience multiple appreciation, says the firm.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on RNG:
- RingCentral downgraded to Equal Weight from Overweight at Morgan Stanley
- DraftKings upgraded, Home Depot downgraded: Wall Street’s top analyst calls
- Craig-Hallum downgrades RingCentral to Hold, lowers price target to $38
- RingCentral price target lowered to $45 from $50 at Wells Fargo
- RingCentral (NYSE: RNG) Falls Amid Management Changes