RingCentral (RNG) is less susceptible to AI displacement risk than the market fears, with the potential for slight growth acceleration from here, RBC Capital Markets said in a Thursday note.
Analysts said that the company's expansion into contact centers via the Nice (NICE) partnership and in-house RingCX and Customer Engagement Bundle enables growth of its share of wallet within an organization.
RBC said that RingCentral's AI strategy is underappreciated, noting that customers using at least one native paid AI product now represent about 13% of total annualized recurring revenue, with net retention above 100% and meaningfully higher average revenue per user than the rest of the customer base.
Analysts expect the company's free cash flow per share to reach about $7.14 in fiscal 2026, up about 11% from a year earlier.
RBC initiated coverage on the stock with an outperform rating and an $85 price target.
Shares of RingCentral were up nearly 5% in Thursday trading.
Price: $76.06, Change: $+3.48, Percent Change: +4.79%