TECH - Wall Street Analysts Predict a 26.79% Upside in RingCentral: Here's What You Should Know | Benzinga
RingCentral (NYSE: RNG) closed the last trading session at $30.76, gaining 7.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $39 indicates a 26.8% upside potential.
The average comprises 20 short-term price targets ranging from a low of $28 to a high of $52, with a standard deviation of $6.42. While the lowest estimate indicates a decline of 9% from the current price level, the most optimistic estimate points to a 69.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for RNG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this ...