RingCentral is For Sale

RingCentral could be acquired for mid $50s per share, says SunTrust 

RingCentral could be acquired for mid $50s per share. See Stockwinners.com Market Radar to read more

After Bloomberg reported that RingCentral (RNG) had hired an adviser after drawing buyout interest, SunTrust analyst Terry #Tillman says the company could be acquired for a price in the mid $50s per share range ” if the company’s value proposition is viewed as a knowledge worker/business productivity platform versus simply business phone systems.”

The analyst recommends that investors focused on the company’s fundamentals own the stock. “based on strong top-line growth and expanding margins and cash flow.”

RingCentral could attract interest from technology-focused private equity firms and other cloud-based software providers, two of the people said. RingCentral may choose not to proceed with a deal, the people said, asking not to be identified as the details aren’t public.

RingCentral last week reported second-quarter revenue of $119.4 million, up 30 percent from the same period a year ago.

The company, which went public in 2013, runs a platform that connects devices for corporate clients, allowing them to link employees’ smartphones, tablets, desktop computers and landline telephones to communicate via voice, text and fax.

It generates most of its revenue from subscriptions, including those sold through resellers including AT&T Inc.

Note that Stockwinners featured RNG at $36.50 and closed the position at $42 yesterday.

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Altice is Interested in Charter

If a deal goes through, Charter could fetch over $470 a share

Altice is Interested in Charter. See Stockwinners.com Market Radar for details

Altice (ATUS), the cable and telecoms group controlled by Franco-Israeli billionaire Patrick Drahi, is lining up a potential $185 billion bid for Charter Communications (CHTR), the second-largest US cable company, according to the FT.com.

The move highlights an expected wave of consolidation in the industry as cable companies enter the wireless business and also look for additional ways to cut costs and grow as more U.S. consumers are cutting their cords.

Altice USA’s initial public offering in June was viewed as a means for Altice to expand into U.S. cable empire by giving the company public stock it can use as currency for new acquisitions.

In May, #Drahi told reporters that he considered cable expansion a priority, followed by mobile and content.

Altice is working with banks to finance the deal through cash and equity, a source said.

Buying another cable company would give Altice USA, currently the fourth-biggest U.S. cable provider, the opportunity to build more scale and cut costs in the United States. Altice completed its $17.7 billion acquisition of Cablevision last June, after buying Suddenlink for $9.1 billion in 2015.

CHTR last traded at $398.45. ATUS  last traded at $30.95.

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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.