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Mizuho downgrades RingCentral to Neutral on risk to 2025 estimates
The Fly

Mizuho downgrades RingCentral to Neutral on risk to 2025 estimates

Mizuho downgraded RingCentral (RNG) to Neutral from Outperform with an unchanged price target of $42. RingCentral recently announced that RingCX, its internally developed contact center as a service solution designed for small businesses, will be its prioritized contact center solution for all use cases going forward, the analyst tells investors in a research note. The firm says this is meaningful change, as CCaaS has been consistently accretive to RingCentral growth, driven by its partnership with Nice (NICE). With the future of the Nice partnership now in question, Mizuho sees risk to consensus subscription revenue growth estimates in 2025 and a lack of catalysts for revenue re-acceleration.

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