Box Inc. Receives Buy Rating Amid Strong Q1 Performance and Conservative Guidance

Bank of America Securities analyst Michael Funk has reiterated their bullish stance on BOX stock, giving a Buy rating yesterday.

Michael Funk has given his Buy rating due to a combination of factors including Box’s impressive performance in the first quarter of fiscal year 2026, where billings growth exceeded expectations. The company’s billings increased by 27%, with a significant portion attributed to early renewals, indicating strong customer retention and demand for Box’s services. Additionally, Box’s management has shown prudence by setting conservative full-year guidance, which reflects a cautious approach in light of economic uncertainties.
Box also reported revenue and billings that surpassed market expectations, supported by favorable foreign exchange conditions and strong early adoption of their Enterprise Advanced offerings. The company’s robust revenue visibility and favorable margin profile further justify the Buy rating, although the competitive environment warrants a discounted valuation compared to other low-growth software groups. The reiterated price objective of $40 is based on a detailed discounted cash flow analysis, which considers various market scenarios.

According to TipRanks, Funk is an analyst with an average return of -8.1% and a 39.26% success rate. Funk covers the Technology sector, focusing on stocks such as Autodesk, Box, and CCC Intelligent Solutions Holdings.

In another report released yesterday, J.P. Morgan also assigned a Buy rating to the stock with a $39.00 price target.