Chowdhry: Box's Results Validate It Was Junk IPO, Should Have Been Priced At $5
Following the results reported by Box Inc (NYSE: BOX), Global Equities Research’s Trip Chowdhry commented that the company’s IPO should have been priced at $5, giving investors an opportunity to make some money.
The IPO marked the peak of the stock, analyst Trip Chowdhry said. His research notes in early 2015 had mentioned that Box was a “total junk company,” and that it would be the next Zynga Inc (NASDAQ: ZNGA), Groupon Inc (NASDAQ: GRPN), GoPro Inc (NASDAQ: GPRO) and Violin Memory Inc (NYSE: VMEM).
Calling Box a hyper-inflated stock, Chowdhry wrote, “…sadly BOX IPO is not the end of Junk IPO parade.” He said the other Junk IPOs that were “in the works” were Nutanix, Twillo, Pinterest, Cloudera and Palantir, and added that the real value of these companies were a fifth of the peak private company valuations.
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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