DA Davidson reiterates Buy rating on Box stock, maintains $45 target

Investing.com - DA Davidson has reiterated its Buy rating on Box, Inc. (NYSE:BOX) stock with a price target of $45.00, representing a potential 40% upside from the current price of $32.25.

The research firm cited Box’s "impressive quarter of pipeline growth and revenue acceleration" as key factors behind the maintained rating. Box has maintained solid 7.2% revenue growth over the last twelve months with an impressive 78.9% gross profit margin, according to InvestingPro data. According to DA Davidson, demand for the company’s Enterprise Advanced offering is driving better-than-expected seat expansions and pricing realization.

The firm noted that Box’s go-to-market investments are "paying dividends" particularly in key vertical markets and in legacy modernization wins. These strategic investments appear to be yielding positive results for the cloud content management company.

DA Davidson believes Box is still "in the early stages of a positive inflection to growth," suggesting potential for further improvement in the company’s performance trajectory. This outlook supports the firm’s decision to maintain its Buy recommendation.

The research firm has also raised its estimates for Box following the quarterly results, though specific revised figures were not detailed in the analysis.

In other recent news, Box Inc reported its third-quarter fiscal 2025 earnings, with revenue reaching $301 million, surpassing analysts’ expectations of $297.46 million. The company’s earnings per share (EPS) came in at $0.31, slightly missing the forecast of $0.32. Despite this minor EPS miss, the revenue beat was well-received by investors, reflecting positively on Box’s strategic advancements in AI and cloud services. Additionally, Raymond James adjusted its price target for Box to $38.00 from $42.00, while maintaining an Outperform rating. The firm highlighted Box’s impressive performance across key indicators, despite some variances that were noted. These developments indicate a strong performance trajectory for Box, particularly in its revenue growth. The company’s continued focus on strategic initiatives in AI and cloud services remains a key area of interest for investors.

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