By Sam Boughedda
Investing.com — Ringcentral Inc (NYSE:RNG) announced Wednesday that Anand Eswaran is stepping down from his role as president and chief operating officer, sending its shares down 15%.
The cloud-based communications company said Chief Accounting Officer Vaibhav Agarwal will be appointed interim COO starting January 1.
The news adds to the recent executive departures at the company, which includes CFO Mitesh Dhruv who announced in November that he is to step down at the end of the year.
Analysts have cut price targets in response to the latest departure.
Deutsche Bank analyst Matthew Niknam sliced his price target by $100 to $300, saying another executive leaving the company is a near-term negative for RingCentral's share price. Niknam kept a buy rating on the shares.
Siti Panigrahi at Mizuho also cut the price target on the stock to $300 from $400 and maintained a buy rating. However, the analyst is concerned by the latest departure, saying it could mean near-term disruption and it will fuel the ongoing bearish narrative." In addition, Panigrahi told investors the company is no longer a top pick.
BTIG analyst Matt Vanliet lowered his price target on RingCentral to $350 from $400, also keeping a buy rating. The analyst cited the recent leadership changes as part of the reason for the PT cut but did state the company is well-positioned for strong growth.
RingCentral shares traded around $181.17 in the early afternoon.