RingCentral’s growth and margins both improve. Why does Morgan Stanley maintain its Equal-weight rating?
Third-quarter subscription revenue growth returned to 6% and margins reached a record high, but overall ARR growth eased slightly and the customer cohort not using paid AI weakened. Morgan Stanley raised its price target from $41 to $91, while arguing that the higher valuation premium has raised the bar for further earnings estimate upgrades.
Morgan Stanley ·