RingCentral (RNG) Announces Partnership With Deutsche Telekom to Offer Co-Branded RCV to European Customers, Analyst Positive

RingCentral (NYSE: RNG) announced today it agreed to a partnership with a major global carrier Deutsche Telekom to deliver cloud communication solutions.

The partnership will be centered around a co-branded version of RingCentral Video (RCV), a product that will be introduced to the carrier’s customers in the second half of 2021.

“We’re looking forward to working closely with Deutsche Telekom to combine their amazing 4G and 5G networks with the world’s best cloud-based communications solution that includes team messaging, video meetings, and cloud phone system, to empower organizations and their people to communicate efficiently with their customers, partners, and other employees,” said Anand Eswaran, RingCentral’s President and COO.

Hagen Rickmann, Managing Director Business Customers Telekom Deutschland GmbH, commented:

“For many years, we have been accompanying customers on their way to the cloud. The cooperation with RingCentral adds an important signpost to this. Together we will support customers in the introduction of modern business cloud communication solutions. This ensures that people can work productively and efficiently from anywhere – a sustainable contribution to success and growth in a rapidly changing world of work.”

Mizuho analyst Siti Panigrahi reiterated its “Buy” rating and a $400.00 per share price target on the RNG stock after witnessing another episode of the company’s aggressive distribution strategy.

“Today's announcement reinforces our thesis that Ring's aggressive distribution strategy with vast partnership opportunities position the company well for UCaaS share gains amid market transitions to the cloud,” the analyst said in a note sent to clients.

“RingCentral trades at a 16x EV/NTM Revenue multiple, below the high-growth SaaS comp group at 22x. Given The company’s market leadership, expected strong durable revenue growth, aggressive partnership strategy, and potential for share gain within a large and growing TAM, we believe RNG shares warrant a 24x EV/NTM revenues multiple, yielding our price target of $400.”

Shares of RingCentral are down 2.7% Tuesday.

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