Raymond James analyst Brian Peterson downgraded RingCentral (RNG) to Outperform from Strong Buy with a price target of $45, down from $50. The firm repositioned several ratings throughout the application software sector at the start of 2025. The analyst still believes RingCentral shares offer a positive risk/reward for investors and notes the “very attractive” free cash flow valuation, but says unified communications as a service valuations have lagged the group for several years, and it does not see a near-term catalyst to close the valuation gap versus peers. Raymond James also sees potential volatility in the shares ahead of the initial 2024 guidance.
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Read More on RNG:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
