Analyst Josh Baer of Morgan Stanley maintained a Hold rating on Box, with a price target of $38.00.
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Josh Baer has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Box’s future performance. The company has demonstrated strong growth in key areas such as billings, bookings, and revenue performance obligations, suggesting potential for future revenue growth. However, despite these positive indicators, the revenue growth has yet to fully materialize, leading to a more conservative Hold rating.
Box’s Enterprise Advanced suite has shown promising adoption rates, contributing to pricing and seat growth, and increasing the net retention rate. While these developments are encouraging, the early stages of Enterprise Advanced and the need for sustained revenue growth keep the rating at Hold. Baer acknowledges the company’s strong performance and innovations, but suggests that investors should remain cautious until more consistent revenue growth is observed.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BOX in relation to earlier this year.