RingCentral price target lowered to $48 from $50 at KeyBanc

KeyBanc analyst Thomas Blakey lowered the firm’s price target on RingCentral to $48 from $50 and keeps an Overweight rating on the shares post a relatively in line Q4 driven by Enterprise, large deals, and solid SMB quarter, with net new ARR growing 20% year-over-year and growing for the first time in eight quarters as management cited stabilized demand conditions, strong new logo growth, and improving sales cycles, linearity, and deal sizes. Top-line guidance for Q1 and 2024 was marginally lower, but in line on EBIT and higher on free cash flow, noting 2024 operating leverage of 200 bps includes a 200 bps headwind from higher opex vs. lower SBC and investment in growth products.