Raymond James boosted its target price for the Belmont, Calif., company's stock to $175 a share from $140.
RingCentral reported non-GAAP profit of $20.4 million, or 21 cents a share, up from $14.1 million, or 19 cents a share, a year ago, and beating analysts' expectations of 16 cents a share.
Shares outstanding rose 4.1% to 82.3 million.
Revenue totaled $215 million, up 34% from a year ago and 5% over Wall Street's forecast.
The company also raised its full-year revenue guidance to a range of $874 million to $877 million, up from the prior range of $862 million to $866 million.
RingCentral also raised its software subscriptions revenue range, to $795 million to $797 million, up from the prior range of $786 million to $790 million.
And it raised its non-GAAP earnings estimate to a range of 77 cents to 79 cents a share, up from the prior range of 71 cents to 75 cents a share.
In a note to investors, Raymond James analyst Brian Peterson reiterated a strong buy rating on RingCentral "following another beat and raise print in 2Q19, with our forward projections moving higher."
"While growth vectors such as enterprise (annual recurring revenue) (+88% year over year) and the channel (+69% year over year) remain encouraging, we argue that investors still underappreciate the long-term sustainability of these drivers, despite record incremental ARR growth in 2Q19," Peterson said.
"This is particularly true in the case of enterprise customers, where (Ring Central) is less than 30% penetrated with recent enterprise wins, and thus would support an even stronger bookings trajectory than reported ARR would suggest."
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