Raymond James maintains Box stock Outperform with $38 target

Published 18/03/2025, 21:50
Raymond James maintains Box stock Outperform with $38 target

Tuesday, Box Inc. (NYSE: BOX) shares maintained their Outperform rating with a steady price target of $38.00, as confirmed by Raymond (NSE:RYMD) James following the company’s annual investor day in New York. Currently trading at $30.86, InvestingPro analysis shows the stock is trading near its Fair Value, with an impressive gross profit margin of 79%. The CEO of Box, Aaron Levie, shared his insights during the event, underscoring the company’s strong positioning in the evolving software landscape, supported by the company’s "GREAT" financial health score.

Levie highlighted the shift towards Systems of Intelligence, emphasizing the growing importance of unstructured data, which comprises about 90% of all data within organizations. Box’s focus on integrating AI functionality and developing intelligent workflows positions it ahead of traditional content management systems, according to the firm’s analysis.

The company’s advancements in artificial intelligence are seen as a key factor in widening its competitive edge. Box’s AI Agents are designed to automate workflows, and with Enterprise Advanced, they are expected to enable more sophisticated workflow automation. This innovation is projected to enhance customer economics significantly.

Box’s outlook on growth remains optimistic, with expectations of maintaining a double-digit growth profile over the long term, in contrast to the FY26 guidance of approximately 6%. The company aims for a Rule of 45-50 profile in the long term, indicating a balance between growth and profitability. With a current market capitalization of $4.4 billion and a notably low PEG ratio of 0.21, InvestingPro data reveals 12 additional key insights about BOX’s valuation and growth prospects. Access the comprehensive Pro Research Report for deep-dive analysis and expert insights.

Raymond James believes that the market has not fully recognized the potential of Box’s strategic direction and the opportunities presented by its AI and workflow automation capabilities. The analyst firm’s reiteration of the Outperform rating and price target reflects confidence in Box’s trajectory and its potential for sustained growth and value creation for investors.

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. The company’s revenue reached $279.5 million, marginally exceeding the anticipated $279.47 million. Despite these positive results, the stock experienced a decline, reflecting broader investor concerns. In analyst updates, DA Davidson maintained a Buy rating for Box with a $45 target, citing the company’s growth momentum and strategic focus on AI and partnerships. Meanwhile, JPMorgan adjusted its price target to $37 while maintaining an Overweight rating, noting strong performance metrics despite foreign exchange headwinds. Citi also reduced its price target to $39 but kept a Buy rating, highlighting the promising start of Box’s new Enterprise Advanced Suite. Box’s strategic investments in AI and content management continue to position it as a leader, with expectations of revenue growth and enhanced product offerings in the coming fiscal year.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.