- Raymond James analyst Brian Peterson maintained Outperform rating on Box, Inc BOX and a $35 price target after meeting with CEO Aaron Levie at company headquarters this week, with management having an optimistic tone about both the near and long-term product roadmap.
- While he will undoubtedly hear more about those efforts at the company's BoxWorks user conference this week, he thinks investors may underappreciate the breadth of functionality added to the platform over the last few years.
- Taking a step back, Box's prior "enterprise content management" focused on storing and managing content, while recent product developments like Canvas and Sign provide much more application functionality.
- He doesn't think Box is done with adding more applications/workflow to its platform, which would only increase the value gap between Box and its legacy competitors.
- He is cognizant that Box is not immune from broader macro headwinds; the trading multiple surprises him, especially given the company's execution and impressive progress on margin expansion over the last few years.
- He thinks that valuation offers a much more defensive investment posture in a potentially turbulent macro environment while having company-specific catalysts for growth (suite adoption) and margins. He decides to remain a buyer.
- Also Read: Sell DocuSign, Buy Box: Digital Document Landscape Is 'Competitive,' Analyst Says
- Price Action: BOX shares traded lower by 0.12% at $27.98 on the last check Thursday.
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