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