RingCentral Inc (NYSE: RNG) has recently announced a number of customer wins, including a fourth-quarter win with Columbia University for 44,000 seats.
Industry checks indicate that cloud adoption is reaching an inflection point, creating a tailwind for multiple vendors providing cloud-based communications software, according to Raymond James.
Raymond James’ Brian Peterson maintains a Strong Buy rating on RingCentral.
After speaking to vendors and customers at the Enterprise Connect conference, Peterson said in a Wednesday note that he has increased confidence in the growth trajectory of cloud-based communications software.
Customers are eager to migrate from legacy to cloud-based solutions due to the prospects of significant cost savings, increases in productivity and scalability gains, the analyst said.
Checks indicate a growing pipeline in public sector and education opportunities, Peterson said. The other key segments include health care, financial services and retail, he said.
RingCentral is gaining momentum in the channel, with 80-percent growth in channel ARR in the fourth quarter, the analyst said. While the company’s partner network has expanded, new channel partners are beginning to drive incremental bookings, he said.
Checks with partners indicate that RingCentral “has clearly emphasized the channel as a key go-to-market area going forward,” Peterson said.
Ring Central stock was trading higher by 1.28 percent at $109.02 at the time of publication Thursday.
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These Analysts Remain RingCentral Bulls
Latest Ratings for RNG
|Mar 2019||Guggenheim||Initiates Coverage On||Buy|
|Feb 2019||Deutsche Bank||Maintains||Buy||Buy|
|Feb 2019||Raymond James||Maintains||Strong Buy||Strong Buy|
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