DA Davidson maintains Buy rating on Box stock with $45 target

Published 05/03/2025, 17:06
DA Davidson maintains Buy rating on Box stock with $45 target

On Wednesday, DA Davidson analysts upheld their Buy rating for Box, Inc. (NYSE:BOX) shares, maintaining a price target of $45.00, representing a significant upside from the current price of $32.06. The firm’s analysts noted that Box concluded the fiscal year 2025 with a robust quarter marked by accelerating growth, with InvestingPro data showing three analysts recently revising their earnings estimates upward. This uptick was attributed to customer upgrades for new artificial intelligence features on the Box platform.

The analysts observed that Box’s partnerships are increasingly contributing to larger deals as the company invests in its go-to-market strategy. With impressive gross profit margins of 78.4% and an overall "GREAT" financial health score according to InvestingPro, DA Davidson’s stance is that Box is at the beginning of a positive shift towards growth, which justifies their decision to reiterate the Buy rating and the $45.00 price target.

Box’s recent performance reflects a strategic emphasis on enhancing its offering with AI capabilities, which has resonated with its customer base. The investment in go-to-market motions has also started to pay off, as evidenced by the involvement of partners in larger transactions.

The analysts’ commentary highlights Box’s momentum in the market, driven by both product innovation and strategic business moves. The company’s focus on AI and partnerships seems to be a key factor in its growth trajectory as per DA Davidson’s evaluation.

DA Davidson’s analysis suggests confidence in Box’s potential for continued growth and market penetration. The maintained price target of $45.00 points to a positive outlook for the company’s stock performance in the near future. InvestingPro offers 11 additional investment tips for Box and a comprehensive Pro Research Report, providing deeper insights into the company’s valuation and growth prospects.

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 against a forecast of $0.41. The company’s revenue for the quarter came in at $279.5 million, slightly above the anticipated $279.47 million. Despite these positive earnings results, Box’s stock experienced a decline in aftermarket trading, reflecting broader market concerns. Analysts from JPMorgan and Citi have adjusted their price targets for Box, with JPMorgan lowering it to $37 while maintaining an Overweight rating, and Citi reducing it to $39, maintaining a Buy rating. Both firms acknowledged Box’s strong bookings and the promising start of its Enterprise Advanced Suite, although they noted some challenges, such as lower margins influenced by the sale of data center assets. Box has highlighted its strategic focus on AI and content management, positioning itself for future growth. The company anticipates revenue growth of 6% for FY 2026, with plans to invest in AI capabilities and partner ecosystems. Box’s new Enterprise Advanced SKU has shown strong momentum, contributing to a 20-40% uplift in annual contract value compared to previous offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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