Morgan Stanley analyst Josh Baer maintained a Hold rating on Box (BOX – Research Report) today and set a price target of $36.00.
Josh Baer has given his Hold rating due to a combination of factors that reflect both optimism and caution. On the positive side, Baer acknowledges Box’s strategic positioning in the AI and content management sectors, which could potentially drive significant growth. The company’s updated product and go-to-market strategy is expected to accelerate growth from approximately 6% in FY26 to a long-term target of 10-15%. Management’s focus on increasing price per seat, expanding partner relationships, and enhancing platform revenue through AI consumption are seen as catalysts for this growth.
However, despite these promising strategies, Baer remains cautious due to macroeconomic risks and current fundamentals that may hinder immediate investor confidence. While the potential for double-digit growth exists, investors are likely to wait for more concrete execution and proof points throughout FY26 before fully committing. The likelihood of achieving a durable 15% growth profile is considered low, and investors may need to see more evidence of success before underwriting such growth. Therefore, Baer maintains a Hold rating, suggesting that while there is potential for return on investment, it is contingent on future execution and market conditions.
Baer covers the Technology sector, focusing on stocks such as DigitalOcean Holdings, ServiceTitan, Inc. Class A, and Chegg. According to TipRanks, Baer has an average return of 1.8% and a 45.13% success rate on recommended stocks.
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