RBC Capital initiated coverage of RingCentral Inc. on Thursday with an outperform rating and a price target of $85, citing the company’s leadership in voice services, expansion into contact centers and artificial intelligence, and a commitment to margin improvement and shareholder returns.
The stock last traded at $72.58, near its 52-week high of $72.85, and has gained 141% over the past 12 months. RingCentral serves approximately 600,000 businesses globally and reported annual recurring revenue of about $2.8 billion. RBC’s target implies roughly 17% upside from current levels.
The analyst firm also highlighted RingCentral’s Q2 fiscal 2026 results, which exceeded expectations. Earnings per share came in at $1.22, above the $1.16 consensus, while revenue reached $657 million, surpassing the $650.55 million estimate. Needham, which previously set a $55 price target, raised its forecast to $85 and maintained a buy rating following meetings with management.
RBC noted that while growth has moderated from pandemic-era peaks, mid-single-digit expansion has demonstrated the company’s resilience. It sees potential for a slight acceleration in growth from current levels, supported by rising demand for AI-based products. RingCentral raised its full-year outlook earlier this year, reinforcing confidence in its near-term trajectory.
InvestingPro data shows 12 analysts have revised earnings estimates upward for the coming period, and the platform’s Fair Value analysis suggests the shares remain undervalued. The company’s market capitalization stands at $6.06 billion.
The broader context includes historical examples from InvestingPro’s ProPicks AI, which cited returns of 185% for Super Micro Computer and 157% for AppLovin in prior selections, underscoring the platform’s track record in identifying high-growth opportunities.
