RingCentral price target lowered to $31 from $34 at Piper Sandler

Piper Sandler analyst James Fish lowered the firm’s price target on RingCentral to $31 from $34 and keeps a Neutral rating on the shares. The firm notes RingCentral reported a relatively inline top-line with better profitability/free cash flow, but mix-quality was weaker and management guided slightly below expectations that implies exiting 2024 at about 7% rather than a potential re-acceleration that bulls expected. The 2024 guide setup looks prudent, with a wild-card around the 2021-cohort renewals and profitability setup being conservative but reflecting a shift to cash-compensation, Piper adds.