Box, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Matt Bullock from Bank of America Securities reiterated a Buy rating on the stock and has a $40.00 price target.
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Matt Bullock has given his Buy rating due to a combination of factors that highlight Box’s promising growth trajectory and strategic advancements. The company’s recent quarterly results show a notable increase in net revenue retention, driven by both price per seat increases and seat expansion, which indicates strong customer engagement and adoption of their Enterprise Advanced offerings. These new AI capabilities are broadening the potential use cases for Box, leading to an upgrade cycle that is revitalizing the company’s growth algorithm.
Moreover, Box’s bookings growth is encouraging, with improvements in go-to-market execution and longer contract durations, suggesting a stable macro environment. The company’s visibility towards achieving 10-15% revenue growth is improving, supported by positive trends in upsells, new customer acquisition, and platform expansion. Bullock reiterates the Buy rating with a price objective of $40, based on a comprehensive DCF analysis, reflecting confidence in Box’s ability to sustain double-digit growth over the long term.
Bullock covers the Technology sector, focusing on stocks such as Monday.com, Box, and Dropbox. According to TipRanks, Bullock has an average return of -7.7% and a 18.18% success rate on recommended stocks.