In a report released today, Josh Baer from Morgan Stanley maintained a Hold rating on Box (BOX – Research Report), with a price target of $36.00.
Josh Baer has given his Hold rating due to a combination of factors surrounding Box’s recent performance and future outlook. Despite a solid fourth quarter with billings growth exceeding expectations, several one-time factors such as foreign exchange volatility and early renewals made it challenging to fully assess the results and guidance. The company’s initial fiscal year 2026 billings guidance of 7% reflects a conservative stance, considering macroeconomic conditions and federal uncertainties, yet it still surpassed expectations.
While Box’s core metrics like churn and net dollar retention rate remained stable, and there was increased demand for multi-year deals, the limited top-line growth and margin pressures without adjustments suggest that the current quarter might not serve as a significant catalyst for stock price appreciation. Although there is optimism about the potential of Box’s Enterprise Advanced suite, the early opportunities appear to be fairly priced given the single-digit growth and limited near-term margin expansion. Therefore, the Hold rating reflects a balanced view of the company’s current valuation and growth prospects.
Baer covers the Technology sector, focusing on stocks such as DigitalOcean Holdings, Chegg, and CCC Intelligent Solutions Holdings. According to TipRanks, Baer has an average return of 2.6% and a 47.75% success rate on recommended stocks.
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