Mizuho Securities Downgrades Ringcentral to “Neutral” Citing Uncertainties in 2025 Subscription Revenue Growth
Mizuho Securities has downgraded Ringcentral Inc (NYSE:) to “neutral” due to uncertainties in its subscription revenue growth trajectory for 2025. The firm has maintained its price target at $42. Shares of Ringcentral were down more than 7% following the announcement.
The downgrade comes after Ringcentral’s strategic shift to prioritize its internally developed contact center solution, RingCX, over its longstanding partnership with NICE. Mizuho analysts noted that the partnership had been a significant driver of growth for Ringcentral’s contact-center-as-a-service (CCaaS) revenue, and with its future now uncertain, they expressed concerns over a lack of clear catalysts for revenue acceleration next year.
The analysts also pointed to the risk of elongating sales cycles and heightened competition in the software sector, which could further complicate Ringcentral’s ability to reach its 2025 growth targets.
In a separate move, Mizuho Securities downgraded 8×8 Inc (NASDAQ:) to “underperform” and trimmed its price target to $2.50 from $2.75. Shares of 8×8 were down about 16% at $2.60.
