RingCentral price target lowered to $40 from $62 at KeyBanc

KeyBanc analyst Thomas Blakey lowered the firm’s price target on RingCentral to $40 from $62 and keeps an Overweight rating on the shares. The firm notes that survey data from 33 VARs and channel partners indicated roughly stable Q1 results relative to plan versus last quarter, and relatively stable 2023 IT budget outlook growth, with less citing macro impact. KeyBanc also points out that RingCentral saw a downtick in activity during Q1 according to respondents, with overall those VARs focused on UCaaS saw a downtick in UCaaS adoption during the quarter. More than half of the VARs reselling RingCentral that responded came in below plan. The firm highlights pricing in UCaaS remained relatively stable in Q1 according to respondents.