Technology

Report by Off Wall Street

The market is misdiagnosing structural share loss as a temporary slowdown. OWS’s industry checks suggest enterprise weakness is driven by competition from Microsoft Teams and Zoom, while a lack of innovation is reflected in Gartner’s Magic Quadrant rankings. Management’s expectations for high growth from AI and RingCX products appear optimistic, with feedback indicating these offerings are largely undifferentiated. At the same time, aggressive cost cuts in R&D and sales are cited as contributing to customer dissatisfaction and weaker retention. With RPOs (backlog) flat for nearly two years and FCF overstated (adjusting for buybacks reduces 2025 FCF to $196m from $530m and the FCF yield was 5.6% rather than the 15% bulls use to argue that RNG is a cheap stock), OWS sees continued pressure on growth and valuation.

Materials

The can-maker’s equity is expected to come under further pressure - the main concerns cited in Gradient’s 13-page report include: 1) Volume and profitability headwinds. 2) Inventory growth higher than targeted and has outpaced forward sales estimates. 3) Growth in receivables suggests a pull-forward of revenue. 4) Accrued compensation fell to a five-year low relative to adjusted operating expenses. 5) Despite the recent share-price correction, BALL still appears expensive. Other active shorts Gradient have initiated coverage on this year include ADT, Cerence, Lamb Weston, Owen’s & Minor and RingCentral.

Technology

Downside risk remains despite sell-off - Gradient’s main concerns include: 1) RNG operates in a highly and increasingly competitive industry. 2) Forward growth is dependent on continued success in transitioning legacy business comms. 3) Signs that RNG is drawing on contract sales at a faster rate than it has in the past. 4) Deferred compensation is becoming a rising headwind to margins. 5) Stock-based compensation is driving unsustainable cash-flow assumptions. A brief video introduction to Gradient’s report can be found here.

Technology

Report by Summit Insights Group

RNG has one of the best product portfolios in the UCaaS market as well as relationships with legacy vendors and service providers which will drive growth. Termination of the Zoom/Five9 merger will benefit RNG in the enterprise segment of the market. Expect the company to continue to beat estimates when it reports in November. TP $300 (~25% upside)