Needham analyst Joshua Reilly raised the price target on RingCentral (NYSE: RNG) to $110.00 (from $85.00) while maintaining a Buy rating.

The analyst comments "Consistent with our thesis, the AI cross-sell to existing customers and net new attach rate was very strong in Q3/26. We believe the primary lever to upside in the quarter was AI product adoption versus any improvement in churn or early benefits from wrapping up the current enterprise contract cycle. As a result, we believe there is more upside to come in 2H/27 as the current enterprise contract renewal cycle headwinds ease, and AI product adoption continues to accelerate. We believe investors continue to underestimate the sustainability of RNG's business, and should be anticipating accelerating revenue growth in 2027 even though our initial estimates are more conservative. We increase our price target to $110, which remains based on a conservative 18x EV/FCF our 2026 estimates."