Mizuho recently revised its price target for RingCentral (RNG, Financial), reducing it from $32 to $25 while maintaining a Neutral rating for the stock. This adjustment comes as part of a broader reassessment of the software sector, reflecting a compression in software company valuations.
Despite the decreased price target, Mizuho analysts suggest that the recent selloff in the market may offer a compelling opportunity for investors to buy. They anticipate strong performance reports for the first quarter across the software industry, although management teams may exhibit caution regarding the fiscal outlook for the year.
Furthermore, Mizuho noted that while certain economic conditions, such as tariffs, remain a point of concern, they are not expected to significantly disrupt the fundamentals of the software-as-a-service (SaaS) industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for RingCentral Inc (RNG, Financial) is $36.00 with a high estimate of $47.00 and a low estimate of $25.00. The average target implies an upside of 59.08% from the current price of $22.63. More detailed estimate data can be found on the RingCentral Inc (RNG) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, RingCentral Inc's (RNG, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for RingCentral Inc (RNG, Financial) in one year is $42.58, suggesting a upside of 88.16% from the current price of $22.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the RingCentral Inc (RNG) Summary page.
