RingCentral price target lowered to $40 from $45 at Mizuho

Mizuho analyst Siti Panigrahi lowered the firm’s price target on RingCentral to $40 from $45 and keeps a Buy rating on the shares. The company reported solid Q2 results, beating revenue and margin expectations, but the shares fell 12% on the announcement of the management transition, the analyst tells investors in a research note. The firm believes the management changes could bring “multiple quarters of disruption and exacerbate existing challenges” of decelerating revenue growth, and persistent competitive pressure. However, Mizuho views 2023 as potentially a trough year for RingCentral’s growth, and notes the company continues to expand margins.