UBS Downgrades RingCentral to Neutral, PT Lowered to $32

UBS Downgrades RingCentral to Neutral, PT Lowered to $32

UBS has downgraded RingCentral (NYSE: RNG) to a "neutral" rating and lowered its price target to $32, reflecting a recent trend of analyst downgrades and altered price targets. The downgrade comes on the heels of the company's third-quarter 2025 earnings guidance, which saw RingCentral's stock fall to $23.60 with significant trading volume [1].

RingCentral's earnings guidance for the third quarter of 2025 included an EPS estimate of $1.060-$1.080, compared to the consensus estimate of $1.069. The company also provided revenue guidance of $631.0 million-$639.0 million, compared to the consensus estimate of $637.5 million. Additionally, RingCentral updated its FY 2025 EPS guidance to $4.200-$4.320 [1].

The stock experienced a significant drop, trading down $0.19 to $23.60 on Tuesday, August 5th, with 1,764,788 shares trading hands. The stock's market capitalization stands at $2.12 billion, with a P/E ratio of -53.64 and a P/E/G ratio of 0.76. The company's 50-day simple moving average is $27.12, and its 200-day simple moving average is $27.77 [1].

The downgrade from UBS follows several other recent downgrades from other analysts. Piper Sandler raised their price objective from $25.00 to $28.00 and maintained a "neutral" rating, while Morgan Stanley reduced their price target from $40.00 to $29.00 and set an "equal weight" rating. Raymond James Financial reduced their price target from $40.00 to $35.00 and set an "outperform" rating, and UBS Group reduced their price target from $38.00 to $33.00 and set a "neutral" rating [1].

UBS analysts cited several factors for their downgrade, including expectations that competition from glucagon-like peptide 1 compounding in the US will persist, negatively impacting RingCentral's sales growth. The company's sales outlook for Wegovy in the US has been "the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition," while its view on Ozempic was negatively impacted by competition in the US [2].

RingCentral's stock has been a subject of interest among hedge funds and institutional investors, with several recent changes in their holdings. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased their holdings by 2.1% in the first quarter, while Woodline Partners LP raised their holdings by 14.8% and Empowered Funds LLC increased their holdings by 9.0% [1].

Despite the recent downgrades, RingCentral continues to operate in the cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions market, providing a unified experience for communication and collaboration across multiple modes [1].

References:
[1] https://www.marketbeat.com/instant-alerts/ringcentral-nyserng-issues-q3-2025-earnings-guidance-2025-08-05/
[2] https://finance.yahoo.com/news/novo-nordisk-growth-profile-seen-201340580.html