FBN Securities Raises RingCentral Price Target to $105
FBN Securities and other financial firms raised price targets for RingCentral following strong AI revenue growth and an increased fiscal 2026 revenue guidance.
RingCentral Inc. raised its fiscal 2026 revenue guidance after reporting third-quarter results that highlighted significant growth in artificial intelligence. The company reported AI annual recurring revenue exceeding $400 million, which is approximately double the amount from the previous year, and achieved a record 24.7% next-generation operating margin.
While third-quarter revenue of $653 million slightly missed expectations, non-GAAP earnings of $1.33 per share beat forecasts. In response to these results, FBN Securities raised its price target for the company to $105 from $60 and maintained an Outperform rating. FBN Securities projects that free cash flow per share will grow 23% year-over-year in fiscal 2026 to reach $7.15.
Several other financial firms also increased their price targets based on strong subscription growth and AI adoption. Needham raised its target to $110, Rosenblatt increased its target to $105, Morgan Stanley set a target of $91, and Evercore ISI established a new target of $90.
