Analyst Note| Victoria Radke |
RingCentral is a unified communications as a service, or UCaaS, provider that deploys a global UC platform that integrates messaging, video, phone, and other cloud-based communication solutions. We believe RingCentral offers a compelling value proposition for investors looking to capitalize on the migration of legacy PBX phone systems to the cloud. Our fair value estimate for RingCentral is $275 per share, down from $391, as we model more muted long-term growth and higher reinvestment needs. However, with shares trading around $175, we view the narrow-moat, stable moat trend company as an attractive buying opportunity.