Goldman Sachs analyst Kash Rangan initiated coverage on RingCentral Inc. with a Buy and a price target of $240, implying a 31.9 percent upside.
Rangan launched coverage on the communication and collaboration segment with a positive sector view.
The 2020 cloud total addressable market of $19 billion implies a cloud penetration at 7 percent in 2020, which should increase to 29 percent in 2025.
Rangan believes RingCentral offers investors “high visibility into multi-year durable high revenue growth in a large market” with a much improved competitive position and a complete multi-modal communications and collaborations platform.
RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral’s software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications.
