UPDATE: Bank of America Initiates Coverage on RingCentral on Multiple Positive Factors

In a report published Tuesday, Bank of America analyst Kash Rangan initiated coverage on

with a Buy rating and $22.00 price target. In the report, Bank of America noted, “We are initiating on RingCentral (RNG) with a Buy rating and a $22 PO. The company (~$155 mn 2013E revs; 300,000 customers) offers a cloud-based service that eliminates the need to install business communication systems (PBXs) on-premise, offering advantages such as minimal upfront investment, rapid deployment and management ease. The company has the largest scale among the cloud-based pure play vendors and in our view has the potential to disrupt the market, which we estimate at $36-$41 bn.” RingCentral closed on Monday at $19.00.