Shares of cloud-based software and business communications provider RingCentral (RNG) - Get Report gained additional altitude on Monday after the company received an upgrade from analysts at J.P. Morgan on the back of its announced deal last week to be an exclusive provider to Avaya (AVYA) - Get Report .
J.P. Morgan analyst Sterling Auty upgraded RingCentral to overweight from neutral and raised his 12-month price target to $225 from $143 following the company's announcement last week of its partnership with business-telecom hardware maker Avaya.
Shares of Avaya surged more than 23% on Friday and shares of RingCentral jumped more than 25% after the two companies announced their plans to partner - a positive development following speculation that Avaya was previously considering putting itself up for sale, among other "strategic options" it was exploring.
Shares of RingCentral were up 7.8%, or $12.76 a share, at $176.06 in morning trading on Monday after jumping more than 28% to $159.55 on Friday. Shares of Avaya, meantime, were up 3.78% at $13.73 after gaining more than 30% on Friday.