RingCentral downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Michael Turrin downgraded RingCentral (RNG) to Underweight from Equal Weight with a price target of $30, down from $38. The firm says the 2025 setup for software is “showing shades” of 2024, leading to questions around if the sector setting up for another first half of the year pullback or more sustained momentum. Wells’ year-end chief investment office survey suggests “incrementally healthier budget growth” in 2025 versus 2024, with 95% of respondents suggesting budget growth in 2025. It downgraded RingCentral to Underweight as the firm sees a shift taking place in the communications space and a worsening competitive position. The analyst expects larger consolidation happening in the contact center as a service market, with smaller players like RingCentral set to face headwinds.