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.
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