BofA update shows where active managers are putting money
Investing.com - Raymond James maintained its Outperform rating and $42.00 price target on Box, Inc. (NYSE:BOX) following the company’s second-quarter results that exceeded expectations. According to InvestingPro data, the company maintains a "GOOD" financial health score, with analyst targets ranging from $24 to $45, and 7 analysts recently revised their earnings estimates upward.
The cloud content management provider delivered results that surpassed Raymond James’ projections across all metrics, including mid-teens growth in constant currency remaining performance obligations (RPO) and a 3% beat on billings.
Box reported strong momentum in its Enterprise Advanced offering, which doubled quarter-over-quarter, with the firm noting that increasing artificial intelligence functionality is driving adoption of higher-priced plans.
Raymond James indicated that while enterprises are making measured investments in AI use cases, Box’s content management functionality should provide significantly more value than legacy approaches, particularly regarding security features.
The investment firm believes Box’s growth potential in an increasingly AI-driven environment may be underappreciated by investors, highlighting that shares are trading at approximately 15 times Raymond James’ calendar year 2026 free cash flow estimate.
In other recent news, Box Inc. reported its second-quarter earnings for fiscal year 2026, surpassing analyst expectations. The company achieved an earnings per share of $0.33, exceeding the forecasted $0.31. Revenue also outperformed projections, reaching $294 million compared to the anticipated $290.78 million. Additionally, Box’s billings exceeded analyst consensus by 3.4%, and the non-GAAP operating margin was about 60 basis points above expectations. Following these results, RBC Capital raised its price target for Box to $26.00 from $24.00, although it maintained an Underperform rating. These developments highlight the company’s financial performance, which exceeded market expectations.
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