RingCentral (RNG) PT Raised to $300 at Oppenheimer

Oppenheimer analyst Brian Schwartz raised its price target on RingCentral (NYSE: RNG) to $300.00 (from $270.00) while maintaining an Outperform rating, saying they expect the company to exceed 2Q consensus estimate.

Key positive takeaways from virtual bus tour:

1) the industry secular trends (data-driven programmatic advertising, cloud business communications, and customer experience) are accelerating during the crisis;

2) buyer behavior changes have pushed spending for the remote teams and ConnectedTV trends to inflection points; and

3) 2H:2020 bookings re-acceleration stories look intact from company-specific catalysts and easier year/year comparisons

On RingCentral specifically, the analyst sees durable growth and efficiency model. He cited: Positives: 1) Business trends point to a sustained strong growth and efficiency outlook for RingCentral;2) verticals and enterprise market adoption are at inflection points; and 3)management expects a big ramp in the Avaya partnership next year.Negative:1)The demand pull-forward from the accelerating work from home trend during the crisis could stall future subscriber growth. However, we see a large enough pool for RingCentral to successfully increase subscribers for many years to come.

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