{"id":38868,"date":"2024-12-13T18:09:53","date_gmt":"2024-12-13T18:09:53","guid":{"rendered":"https:\/\/isafespend.com\/?p=38868"},"modified":"2024-12-13T18:09:53","modified_gmt":"2024-12-13T18:09:53","slug":"mizuho-downgrades-ringcentral-on-subscription-growth-concerns-shares-down-7-by-investing-com","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=38868","title":{"rendered":"Mizuho downgrades RingCentral on subscription growth concerns, shares down 7% By Investing.com"},"content":{"rendered":"
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Investing.com —\u00a0Mizuho Securities has downgraded Ringcentral Inc <\/span><\/span> (NYSE:) to “neutral,” citing uncertainties in its subscription revenue growth trajectory for 2025. The firm maintained its price target at $42. Shares of RingCentral were down more than 7%.<\/p>\n

The downgrade follows RingCentral\u2019s strategic shift to prioritize its internally developed contact center solution, RingCX, over its longstanding partnership with NICE.<\/p>\n

\u201cWith the future of the NICE partnership now in question, we see risk to consensus subscription revenue growth in 2025 and lack of catalysts for revenue re-acceleration,\u201d analysts wrote.<\/p>\n

Mizuho <\/span><\/span> (NYSE:) analysts noted that the partnership had been a significant driver of growth for RingCentral\u2019s contact-center-as-a-service (CCaaS) revenue. With its future now uncertain, the analysts expressed concerns over a lack of clear catalysts for revenue acceleration next year.<\/p>\n

RingCentral is one of several software companies facing pressures from a cautious macroeconomic environment. While the broader software sector shows resilience, Mizuho highlighted risks such as elongating sales cycles and heightened competition.<\/p>\n

Brokerage also downgraded 8×8 Inc <\/span><\/span> (NASDAQ:) to \u201cunderperform,\u201d trims price target to $2.50 from $2.75. Shares of the company were down about 16% at $2.6<\/p>\n<\/div>\n<\/div>\n