US stock futures inch lower after Wall St marks fresh records on tech gains
Investing.com - UBS maintained its Buy rating and $42.00 price target on Box, Inc. (NYSE:BOX) following the BoxWorks conference in San Francisco. The target represents a potential 29% upside from the current price of $32.56. According to InvestingPro data, Box maintains impressive gross profit margins of 79% and trades at an attractive PEG ratio of 0.45.
The firm observed several new generative AI product announcements at the event, including Box AI Search Agent, Research Agent, Extract, Automate, enhancements to Box AI Studio, and Box Shield Pro. Most of these features are included in the top-tier Box Enterprise Advanced subscription, while Box Shield Pro is available as an add-on product with additional monetization potential. InvestingPro’s analysis shows Box maintains a "GREAT" overall financial health score, supporting its ability to invest in AI innovations.
UBS noted mixed customer feedback regarding Box’s AI features, with some partners actively promoting the Enterprise Advanced tier to customers, representing a positive signal for adoption.
The firm also highlighted that some customers indicated they are not yet upgrading to Enterprise Advanced due to budget constraints, which UBS considered a negative factor for near-term growth.
UBS emphasized that the Enterprise Advanced subscription tier has been available for less than a year, suggesting it is still too early for these offerings to significantly impact Box’s financial results.
In other recent news, Box, Inc. announced its second-quarter earnings for fiscal year 2026, surpassing analyst expectations with an earnings per share of $0.33, compared to the forecasted $0.31. The company’s revenue also exceeded projections, reaching $294 million against a forecast of $290.78 million. Following these results, DA Davidson reiterated its Buy rating with a $45 price target, citing the company’s raised outlook for the year due to strong demand for its Enterprise Advanced tier. Raymond James also maintained its Outperform rating and set a $42 price target, noting that Box’s results exceeded their projections across all metrics.
RBC Capital, despite raising its price target from $24 to $26, maintained an Underperform rating. They acknowledged Box’s Q2 revenue exceeded Street expectations by 1.1%, and billings outperformed analyst consensus by 3.4%. The non-GAAP operating margin was approximately 60 basis points above expectations. These developments suggest a positive outlook from certain analysts, while others remain cautious. Overall, Box’s recent performance has sparked varied responses from investment firms.
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