- Needham analyst Ryan Koontz downgraded RingCentral, Inc (NYSE:RNG) from Buy to Hold.
- His recent fieldwork indicates the company’s enterprise growth could continue to slow to the point where 2023 estimates now appear at risk.
- Since 4Q21, he worried that a softening pipeline could impact RNG’s enterprise revenue growth and limit the magnitude of revenue beats if new strategic partner sales did not quickly gain momentum.
- It has become clear that Microsoft Corp (NASDAQ:MSFT) Teams’ enterprise footprint up-sell to voice represents an “increasing headwind” to RingCentral’s growth.
- His recent research indicates that new Teams’ sell-in dialing plan opportunities now reach below $5 per month per seat.
- Therefore, he lowered his 2023 estimates for revenue growth from 24% to 22% and EPS from $2.48 to $2.29 and downgraded the stock.
- Price Action: RNG shares traded lower by 9.82% at $55.31 on the last check Wednesday.
Why Chipotle Stock Is Cooking Thursday
Chipotle said first-quarter revenue increased 14.1% year-over-year to $2.702 billion, which beat the consensus estimate of $2.675 billion, according to Benzinga Pro. The fast-casual restaurant chain company reported adjusted earnings of $13.37 per share, which beat analyst estimates of $11.68 per share.
