RBC Capital raises Box stock price target to $24 from $21

On Wednesday, RBC Capital Markets adjusted its outlook on Box, Inc. (NYSE:BOX), currently trading at $36.83 with a market capitalization of $5.3 billion, by increasing the price target to $24, up from the previous $21, while maintaining an Underperform rating on the company’s shares. The revision followed Box’s first-quarter results, which triggered a 10% surge in the company’s stock in after-hours trading. According to InvestingPro analysis, the stock is currently trading near its 52-week high.

Box’s first-quarter revenue outperformed consensus estimates, supported by stronger billings which were attributed to early renewals. The company maintains impressive gross profit margins of 79% and has received a "GOOD" financial health score from InvestingPro. Despite these positive indicators, RBC Capital noted that Box has introduced a slightly lower billings guidance for fiscal year 2026, citing a cautious stance in light of the uncertain macroeconomic environment.

The analyst from RBC Capital highlighted that Box’s Net Revenue Retention (NRR) rate has remained stable quarter over quarter for the fourth consecutive quarter and seems to have reached a low point. The potential for growth acceleration at Box is linked to upgrades to its Enterprise Agreement (EA) SKU, which could lead to a significant revenue uplift of 20-40%, as seen by the management’s outlook.

However, RBC Capital expressed some reservations, pointing out that the timing of when these upgrades will materially impact Box’s financial estimates remains uncertain. This caution reflects the analyst’s perspective on the stock’s future performance despite the company’s strong start to the year and the mixed results in billings.

In other recent news, Box Inc. reported its first-quarter earnings for 2025, surpassing expectations with earnings per share (EPS) at $0.30, compared to the forecasted $0.26. Revenue for the quarter reached $276 million, slightly exceeding projections, marking a 4% year-over-year increase. In addition to these financial results, Box Inc. has seen significant interest in its new Enterprise Advanced tier, which includes enhanced AI capabilities, leading to early contract renewals and upgrades. Analysts from DA Davidson and Raymond (NSE:RYMD) James have reacted positively to these developments, raising their price targets to $45 and $42, respectively, while maintaining favorable ratings. JPMorgan also increased its price target to $39, noting a strong performance in calculated billings growth and a positive medium-term outlook despite some macroeconomic caution. Box Inc. continues to focus on expanding its AI-driven content management platform, which is resonating well with its customer base. The company’s strategic partnerships with AI model providers are enhancing its competitive edge, as highlighted by CEO Erin Levy. These updates reflect Box Inc.’s ongoing efforts to capitalize on its growth strategies in a dynamic market environment.

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