- Raymond James Analyst Brian Peterson maintained the outperform rating Box, Inc CRATE and a $35 price target after meeting CEO Aaron Levie this week at the company’s headquarters, with management taking an upbeat tone on both the near and future long-term product roadmap.
- While he’ll no doubt learn more about that effort at the company’s BoxWorks user conference this week, he thinks investors may be underestimating the breadth of functionality that has been added to the platform in recent years.
- Taking a step back, Box’s earlier “enterprise content management” focused on storing and managing content, while recent product developments like Canvas and Sign provide that much more application functionality.
- He doesn’t think Box is done adding more applications/workflows to its platform, which would only widen the value gap between Box and its old competitors.
- He is aware that Box is not immune to broader macro headwinds; The trade multiple surprises him, especially given the company’s execution and impressive progress in margin expansion over the past several years.
- He believes valuation offers a much more defensive investment stance in a potentially turbulent macro environment, while also having company-specific catalysts for growth (launch of suites) and margins. He decides to remain a buyer.
- also read: Sell DocuSign, Buy Box: The digital document landscape is “competitive,” says analyst
- Price promotion: BOX shares traded 0.12% lower at $27.98 on the last check Thursday.
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