Investing.com -- Mizuho Securities has downgraded Ringcentral Inc (NYSE:RNG) 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%.
The downgrade follows RingCentral’s strategic shift to prioritize its internally developed contact center solution, RingCX, over its longstanding partnership with NICE.
“With 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,” analysts wrote.
Mizuho (NYSE:MFG) analysts noted that the partnership had been a significant driver of growth for RingCentral’s 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.
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.
Brokerage also downgraded 8x8 Inc (NASDAQ:EGHT) to “underperform,” trims price target to $2.50 from $2.75. Shares of the company were down about 16% at $2.6
Related Articles
Mizuho downgrades RingCentral on subscription growth concerns, shares down 7%
S&P 500 slips to remain on track for weekly loss ahead of Fed meeting next week
Local unions call on Kroger's board to replace CEO after $7.5 billion buyback plan
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.