Oppenheimer Cuts Price Target on Box (BOX) to $18; Reiterates Buy

Oppenheimer maintained an Outperform rating on Box, Inc. (NYSE: BOX), and cut the price target to $18.00 (from $21.00), following the company's 1Q earnings report. Box reported sales of $90.2M and ($0.18), ahead of the Street's $88.7M and ($0.24) targets. However, billings of $75.9M were below consensus of $84.9M.

Analyst Ittai Kidron commented, "Box delivered a solid April quarter ahead of expectations, but lower than expected billings and an only in-line guide will likely weigh on the shares near term. Management had cautioned of a sharp 1QFY17 billings drop, but it was still underestimated by the Street. This pressure will likely take several more quarters to flush out as previous multi-year payers are converted to annual payments and new buying patterns reflecting large deal seasonality and IBM are absorbed. We continue to like the story (IBM- and new product-driven), but there are enough question marks to likely keep the shares range-bound until Box delivers a bookings rebound to rebuild investor confidence. We feel this will come only late in FY17. Maintain Outperform on the long-term view, lowering estimates slightly."

For an analyst ratings summary and ratings history on Box, Inc. click here. For more ratings news on Box, Inc. click here.

Shares of Box, Inc. closed at $12.81 yesterday.

You May Also Be Interested In

• Hertz Global (HTZ) PT Lowered to $6 at Deutsche Bank
• Goldman Sachs First Take on Netflix (NFLX): 'We expect the market to have a muted reaction'
• Orora Ltd. (ORA:AU) (ORRAF) PT Lowered to AUD2.20 at JPMorgan