Analysts Slash Price Targets On RingCentral Over Executive Departure At Quick Succession

Analysts cut their price targets on RingCentral Inc RNG following its COO departure shortly after a CFO transition.

• Deutsche Bank analyst Matthew Niknam lowered the price target on RingCentral to $300 from $400, implying a 60% upside, and kept a Buy. 
• The analyst views another executive departure as a near-term negative for the shares but says the stock's risk/reward keeps him at Buy.
• Mizuho analyst Siti Panigrahi lowered the price target on RingCentral to $300 from $400 and kept a Buy. 
• The analyst is concerned by the departure of President and COO Anand Eswaran. 
• The news could trigger near-term disruption and will "fuel the ongoing bearish narrative" around RingCentral's growth fundamentals and keep shares range-bound until "stellar execution manifests in coming quarters," Panigrahi tells investors in a research note. 
• The analyst keeps a Buy rating but no longer sees RingCentral as a top pick.
• BTIG analyst Matt VanVliet lowered the price target on RingCentral to $350 from $400, implying a 86% upside, but kept a Buy. 
• The analyst cites the compression of current group multiples among its peers and notes its executive leadership changes announced yesterday. 
• However, he still believes that RingCentral remains well-positioned for "strong growth." 
• VanVliet adds that RingCentral's strategic partnerships remain "in very early innings," its channel momentum continues with a 59% average growth rate for the past 11 quarters, and that the recent Contact center as a Service attach rates have been strong.
• Price Action: RNG shares traded lower by 12.3% at $188.12 on the last check Thursday.