Analysts Lukewarm On Box Ahead Of Earnings
Box Inc (NYSE: BOX), which disappointed investors mightily in March with its first-ever quarterly report as a public company, is coming up to bat again later Wednesday.
Analysts are mostly lukewarm on the cloud storage company, which went public in January.
Its shares are off about 24 percent since the offering and traded recently at $17.62, up $0.70.
A lock-up on insiders' shares expires next month, and nearly 30 percent of Box's float was held as short interest as of May 15.
Wells Fargo's Jason Maynard said recently that Box is likely to meet its first-quarter growth target of about 40 percent.
But Maynard said Box's growth will slow during the remainder of the year, on increasingly difficult comparisons.
Given Box's "slowing growth profile," Maynard called Box "fairly valued" and maintained a Market Perform rating on the shares.
J.P. Morgan's Mark Murphy maintained a Neutral rating on Box, although he noted the company believes its margins won't be hurt as Amazon.com, Inc. (NASDAQ: AMZN) and Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) increasingly cut their prices on cloud services.
Box "doesn't charge customers on storage, but rather on a per seat basis," Murphy said.
But while acknowledging that competition could result in pricing pressure or an eroding market share, Credit Suisse's Philip Winslow nonetheless maintained an Outperform rating and $24 target on the company.
"We maintain a positive opinion of management's vision," Winslow said.
Latest Ratings for BOX
|Sep 2016||Mitsubishi UFJ||Initiates Coverage on||Neutral|
|Jun 2016||JP Morgan||Downgrades||Overweight||Neutral|
|Mar 2016||Drexel Hamilton||Initiates Coverage on||Buy|
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