RingCentral price target lowered to $50 from $65 at Jefferies

Jefferies analyst Samad Samana lowered the firm’s price target on RingCentral (RNG) to $50 from $65 and keeps a Buy rating on the shares. The company announced an additional write-down of the sales commissions that were pre-paid to Avaya (AVYA) as part of their partnership, Samana tells investors in a research note. While not surprising, the move suggests Avaya’s contribution will likely be worse than expected, says the analyst. Samana thinks that while this could actually lead to more direct business for RingCentral long-term, in the short-term it will be a "net negative." As such, the analyst reduced revenue growth estimates.