Morgan Stanley analyst Josh Baer has maintained their neutral stance on BOX stock, giving a Hold rating on August 14.
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Josh Baer has given his Hold rating due to a combination of factors that reflect both positive momentum and certain limitations. Box reported a solid second quarter with revenue growth surpassing expectations, driven by strong bookings and increased adoption of its Enterprise Advanced solutions. The company’s ability to double the number of deals closed compared to the previous quarter and the improvement in net retention rate to 103% are positive indicators of its business momentum.
However, despite these encouraging results, the operating margin guidance for FY26 remains unchanged at 28%, which slightly fell short of expectations. This lack of improvement in margins limits the potential for upward revisions in estimates, leading to a more cautious outlook. While BoxAI’s targeted use cases are showing promise, the overall financial outlook suggests a balanced view, justifying the Hold rating.
Baer covers the Technology sector, focusing on stocks such as Monday.com, ServiceTitan, Inc. Class A, and Box. According to TipRanks, Baer has an average return of 3.2% and a 53.13% success rate on recommended stocks.