UBS downgraded Dropbox (DBX) to Sell from Neutral with a price target of $27, down from $29, after assuming coverage of the name. The firm’s channel checks show “negative demand signals” for Dropbox Dash, the company’s new artificial intelligence product, as well as continued pressure on its core file, sync, and share business. Dropbox shares will de-rate from current levels as the company will not be able to return to and sustain positive revenue growth given deteriorating revenue growth fundamentals, the analyst tells investors in a research note.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DBX:
- Dropbox Secures $700M Loan, Announces Share Buyback
- Dropbox Appoints Sarah Schubach as Chief Accounting Officer
- Dropbox Earnings Call: Mixed Sentiment Amid Revenue Challenges
- Dropbox price target lowered to $29 from $31 at UBS
- Dropbox: Strong Q2 Performance Amidst Cautious Outlook and Long-term Growth Challenges