Raymond James lifts Box Inc. price target to $42, retains Outperform

Published 28/05/2025, 11:10
Raymond James lifts Box Inc. price target to $42, retains Outperform

On Wednesday, Raymond (NSE:RYMD) James analyst Brian Peterson increased the price target for Box, Inc. (NYSE: BOX) shares to $42.00, up from the previous target of $38.00, while maintaining an Outperform rating on the stock. With Box currently trading at $31.45 and sporting a market capitalization of $4.55 billion, InvestingPro analysis suggests the stock is trading near its Fair Value. Peterson highlighted Box’s first-quarter results, which demonstrated a significant increase in the enterprise advanced plan’s adoption.

The analyst pointed out that the company’s billings and Remaining Performance Obligations (RPO) showed considerable acceleration, indicating a robust uptrend. Supporting this positive outlook, InvestingPro data reveals impressive gross profit margins of 79.08% and steady revenue growth of 5.05% over the last twelve months. He specifically noted that the 13% growth in calculated Remaining Performance Obligations (cRPO) is a reliable indicator of actual bookings, in contrast to other metrics that might be influenced by timing and foreign exchange benefits.

Peterson expressed optimism about Box’s growth prospects, suggesting that the company could sustain double-digit growth rates, a scenario previously considered unlikely by some observers. This optimism is reflected in Box’s strong financial health score of "GOOD" according to InvestingPro, which offers 10+ additional exclusive insights about Box’s performance and potential. The continuation of this growth trajectory is expected to depend on the widespread acceptance and effective implementation of new pricing strategies.

The analyst also mentioned that Box’s new pricing and an expanding Systems Integrator (SI) channel could serve as mid-term catalysts for the stock, which is currently trading at approximately 15 times Raymond James’ estimated Free Cash Flow (FCF) for the calendar year 2026. Peterson views this valuation as presenting an attractive risk/reward balance for investors.

In summary, the revised price target reflects Raymond James’ confidence in Box’s growth strategy and the company’s potential to capitalize on its enterprise advanced plan and new pricing initiatives. The Outperform rating underscores the analyst’s positive outlook on the stock’s performance moving forward.

In other recent news, Box, Inc. reported its first-quarter earnings for 2025, surpassing expectations with an 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. This performance reflects a 4% year-over-year increase in revenue, with billings rising significantly by 27%, indicating strong customer demand and future revenue potential. Box’s strategic focus on AI-driven content management has been a key driver, with 61% of revenue now coming from suite customers.

In other developments, DA Davidson raised its price target for Box to $45, maintaining a Buy rating, citing the company’s strong start to fiscal year 2026 and effective execution amid uncertain conditions. Similarly, JPMorgan increased its price target to $39, maintaining an Overweight rating, following Box’s reported billings growth that exceeded expectations. Analysts highlighted the company’s successful adoption of bundled offerings and the potential for AI to drive significant revenue. Despite these positive indicators, Box’s management has shown caution in its second-half guidance due to macroeconomic uncertainties.

Box has also announced significant AI product updates and partnerships, further enhancing its competitive edge in the content management space. The company remains focused on expanding its AI-driven platform, with full-year revenue guidance suggesting continued growth. These recent developments underscore Box’s strategic position in the industry, particularly with its integration of AI technology.

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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