Morgan Stanley Says Pricing Is Key At Box, Initiates Coverage

In a report published Tuesday, Morgan Stanley analyst Keith Weiss initiated coverage on Box BOX with an Equal-Weight rating and $20.00 price target. In the report, Morgan Stanley noted, "The ability of cloud-based content manager Box to sustain pricing will determine the size of its market opportunity. We believe a growing enterprise ecosystem will offset competitive pressures over time, but near-term limits on growth and margins make current 7x EV/CY16e sales multiple look fair." Box closed on Friday at $20.18.