DA Davidson lifts Box stock price target to $45, maintains Buy rating

On Wednesday, DA Davidson, a financial research firm, increased its price target on Box, Inc. (NYSE: BOX) shares from $40.00 to $45.00 while reiterating a Buy rating on the stock. According to InvestingPro data, this new target represents an 18% upside from current levels for the $4.55 billion market cap company. The firm’s analyst cited Box’s robust start to fiscal year 2026, noting the company’s effective execution amid uncertain conditions. Customers have been renewing contracts ahead of schedule and showing a keen interest in upgrading to Box’s new Enterprise Advanced tier, which includes enhanced AI capabilities.

The analyst from DA Davidson highlighted the contribution of partners in securing larger deals, a result of Box’s strategic investments in its go-to-market initiatives. The firm believes that Box is at the beginning of a positive growth inflection. The analyst’s statement underscored the company’s momentum, "Box started out FY26 strong, executing through uncertainty with customers renewing early and upgrading to the new Enterprise Advanced tier given heightened interested in the new AI capabilities on Box’s platform."

Box’s focus on expanding its enterprise offerings and integrating AI technology seems to be resonating well with its customer base. The early renewals and interest in the higher service tier suggest a strong value proposition and customer loyalty, which are critical factors for sustained growth in the competitive cloud services market. InvestingPro analysis reveals that Box maintains a GOOD overall financial health score, with particularly strong metrics in growth and profitability. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report, available with your subscription.

The investment in the company’s go-to-market strategy is also paying dividends, as evidenced by the increasing role of partners in facilitating larger deals. This collaborative approach not only expands Box’s reach but also enhances its ability to deliver comprehensive solutions to its clients. The company’s attractive PEG ratio of 0.22 suggests it may be undervalued relative to its growth potential.

DA Davidson’s revised price target of $45.00 reflects a positive outlook on Box’s future performance. The firm’s continued Buy rating indicates confidence in the company’s strategic direction and potential for further growth in the coming periods. Box, Inc. is evidently making strides in its business operations, which is recognized by the financial research firm’s latest assessment and supported by its solid financial metrics.

In other recent news, Box Inc reported its first-quarter earnings for 2025, surpassing expectations with earnings per share (EPS) of $0.30, compared to the forecasted $0.26. The company’s revenue for the quarter reached $276 million, slightly above projections, marking a 4% increase year-over-year. Box’s billings saw a significant rise of 27% year-over-year, indicating strong customer demand and potential for future revenue. Remaining performance obligations grew by 21% year-over-year, demonstrating a positive long-term outlook. JPMorgan analyst Pinjalim Bora raised Box’s stock price target to $39, maintaining an Overweight rating, reflecting confidence in the company’s strategic position and growth potential. Despite macroeconomic uncertainties, Box’s management maintained its revenue growth forecast while adjusting its billings growth outlook. The company emphasized its focus on AI-driven content management, with 61% of revenue now coming from suite customers. Box Inc’s full-year revenue guidance suggests continued growth, with expectations of 7% year-over-year increase.

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