RingCentral (RNG) Soars 27% on Strong Income, Bullish Rating

We recently published 10 Stocks With Easy 15-30% Upside. RingCentral, Inc. (NYSE:RNG) is one of the best-performing stocks on Wednesday.

RingCentral climbed by 26.97 percent on Wednesday to finish at $29.99 apiece as investors cheered a series of positive developments, including a strong earnings performance and a bullish analyst rating for its stock.

In an updated report, RingCentral, Inc. (NYSE:RNG) said it swung to a net income of $13.19 million from a $14.7 million net loss in the same period last year. Total revenues grew by 4.6 percent to $620.4 million from $592.9 million year-on-year.

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In the first half, net income ended at $2.86 million, a reversal from the $43 million net loss in the same comparable period. Total revenues inched up by 2 percent to $1.2 billion from $1.18 billion year-on-year.

Following the results, investment firm Oppenheimer raised its stock rating for RingCentral, Inc. (NYSE:RNG) to “outperform” from “perform” previously, with a price target of $35.

According to Oppenheimer, it sees RingCentral, Inc. (NYSE:RNG) as a defensive play with upside potential at an attractive entry point, with the company currently nearing its five-year low.

It added that it expects a 50- to 100-basis point expansion annually for the company.