Benzinga | Dec 16, 2021 06:17AM EST

Goldman Sachs Is Bullish On RingCentral, Sees 32% Upside

Goldman Sachs analyst Kash Rangan initiated coverage on RingCentral Inc (NYSE:RNG) with a Buy and a price target of $240, implying a 31.9% upside.

* Rangan launched coverage on the communication and collaboration segment with a positive sector view.

* The 2020 cloud total addressable market of $19 billion implies a cloud penetration at 7% in 2020, which should increase to 29% in 2025.

* Rangan believes RingCentral offers investors "high visibility into multi-year durable high revenue growth in a large market" with a much improved competitive position and a complete multi-modal communications and collaborations platform.

* RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral's software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications.

* Related Content: Why RingCentral's Stock Is Soaring Today

* Price Action: RNG shares traded higher by 1.68% at $185 in the premarket session on the last check Thursday.