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Investing.com - RBC Capital has raised its price target on Box, Inc. (NYSE:BOX) to $26.00 from $24.00 while maintaining an Underperform rating following the company’s second-quarter earnings report. The cloud storage company, currently trading at $31.16 with a market cap of $4.54 billion, has received mixed signals from analysts, with targets ranging from $24 to $45.
Box reported Q2 revenue that exceeded Street expectations by 1.1%, compared to a four-quarter average beat of 0.2%. The company’s billings outperformed analyst consensus by 3.4%, while non-GAAP operating margin came in approximately 60 basis points above expectations. According to InvestingPro data, Box maintains impressive gross profit margins of 79.15%, demonstrating strong operational efficiency.
The solid quarterly performance drove Box shares up approximately 3% in after-market trading. Despite the positive results, RBC Capital analyst Rishi Jaluria indicated the firm is waiting for "signs of further EA SKU upgrade traction" before reconsidering its rating. Notably, InvestingPro analysis reveals 7 analysts have recently revised their earnings expectations upward, suggesting growing confidence in Box’s near-term prospects.
Box provided mixed guidance for upcoming periods, with revenue projections for both Q3 and fiscal year 2026 coming in above Street expectations. However, the company’s profitability outlook was described as "in-line/modestly below" consensus estimates.
The price target increase represents an 8.3% upward revision from RBC Capital’s previous $24.00 target, though the firm maintained its Underperform rating on Box stock.
In other recent news, Box Inc. reported its earnings for the second quarter of fiscal year 2026, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.33, which exceeded the forecasted $0.31. Additionally, Box Inc.’s revenue came in at $294 million, outperforming the projected $290.78 million. These results highlight positive financial performance for the quarter. Despite the favorable earnings and revenue figures, Box’s stock experienced a slight decline during regular trading. However, it saw a minor increase in after-hours trading. These recent developments are noteworthy for investors considering Box Inc.’s financial position and market performance.
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