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.
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