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On Wednesday, Citi analysts maintained a positive outlook on Box, Inc. (NYSE:BOX), reiterating a Buy rating and a $39.00 price target. The affirmation came after Box’s annual investor day, which highlighted the company’s growing focus on artificial intelligence (AI) strategies and the introduction of new use cases through Enterprise Advanced (EA). According to InvestingPro data, Box maintains impressive gross profit margins of 79.1% and has achieved a "GREAT" financial health score, supporting its strategic initiatives. The company’s go-to-market strategy is evolving to leverage these advancements, with increased investments in partnerships, specific industry verticals like financial services, and EA.
Box has reiterated its medium-term guidance framework set last year, which anticipates 10-15% revenue growth and an EBIT margin of 34-37%. Notably, the company has improved its free cash flow (FCF) margin forecast by one percentage point, now expecting 35-38%. Some of the savings realized from AI efficiencies are expected to be reinvested into the organization. For deeper insights into Box’s financial health and growth metrics, InvestingPro subscribers can access 12 additional exclusive ProTips and comprehensive financial analysis.
Analysts expressed increased confidence in Box’s potential to accelerate its growth back into the double digits. This optimism is primarily driven by the pricing uplift of EA and the consumption elements of the AI platform. The analysts also gained a clearer understanding of the growth-supporting factors during the investor day.
Box’s current trade value, at 13 times its estimated free cash flow for calendar year 2026, was cited as presenting a compelling risk-reward scenario. With a P/E ratio of 22.04 and current revenue growth of 5.05%, InvestingPro analysis suggests the stock is trading near its Fair Value. This valuation is seen in the context of the company’s potential for revenue reacceleration and its ability to continue driving annual margin expansion by 1-2 percentage points, with additional upside potential from its AI initiatives.
In other recent news, Box Inc. reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.42, slightly above the forecast of $0.41. Revenue for the quarter was $279.5 million, marginally exceeding the anticipated $279.47 million. Despite these positive results, Box’s stock fell in aftermarket trading, reflecting broader market concerns. Analysts from DA Davidson maintained a Buy rating with a $45 target, noting that Box concluded the fiscal year with a strong quarter due to customer upgrades for new AI features. Raymond (NSE:RYMD) James also reiterated an Outperform rating with a $38 target, highlighting Box’s strong positioning in the software landscape and its advancements in AI. Meanwhile, JPMorgan adjusted Box’s price target to $37 while maintaining an Overweight rating, acknowledging Box’s strong performance metrics and early renewals. Citi analysts, while reducing their price target to $39, maintained a Buy rating, expressing optimism about Box’s Enterprise Advanced Suite’s promising start. These developments underscore Box’s strategic emphasis on AI capabilities and partnerships, which are seen as key factors in its growth trajectory.
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