RingCentral downgraded to Peer Perform at Wolfe amid persistent macro headwinds

As previously reported, Wolfe Research analyst Alex Zukin downgraded RingCentral to Peer Perform from Outperform with a fair value range of $32-$37. RingCentral "has demonstrated strong execution in a massive market," but an increasingly difficult macro environment is driving elongating sales cycles and smaller initial deal sizes, said Zukin. He expects these headwinds to persist and thinks pricing pressure is likely to escalate given the cost-cutting environment, which suggests headwinds to growth now that the company crossed $2B in ARR, Zukin tells investors.