By Sam Boughedda
Despite opening lower, Box (NYSE:BOX) shares are up more than 1% Wednesday following its Analyst Day, which resulted in positive comments about the company's potential outlook.
Citi analysts maintained a Buy rating and $34 price target on the stock in a note, telling investors that in the event, Box management highlighted its product roadmap centered on security and AI at the event.
"We remain encouraged by the multi-year improvement in execution, supported by the Suites strategy, and see valuation at 10x CY25 Box's FCF guide as attractive – we remain Buy rated and see opportunities for upside supported by further packaging/pricing initiatives, an expanding higher-value content services portfolio, and new AI innovation potentially layering in," they wrote.
Raymond James analysts kept an Outperform rating on Box, stating that they think the Analyst Day session showed "Box's commitment to product leadership with investments in security and incremental application functionality, which has already led to higher revenue per customer (Suites adoption ramping)."
"We're intrigued that shares have fallen so sharply post F4Q results despite a constant currency growth outlook of 10%, particularly given longer-term growth vectors and a ramping margin profile. With shares trading at just 15x our CY23 FCF projection, we see an attractive risk/reward," added the analysts.
Finally, Morgan Stanley analysts believe the Analyst Day supported the view that Box has "more room to run across addressing its $74 billion TAM, driving suite adoption, delivering margin expansion, and sustaining 20%+ FCF growth."
"Trading at just 12x EV/CY24 FCF, shares underprice this FCF growth," said the analysts, who maintained an Overweight rating and a $37 price target on the stock.