Dropbox (DBX) PT Raised to $27 at Nomura as Revenue Growth Reaccelerates

Nomura analyst Christopher Eberle raised the price target on Dropbox (NASDAQ: DBX) to $27.00 (from $25.00) after 3Q results showed revenue re-accelerate for the first time as a public company. ARR grew to $1.77bn, up from $1.65bn in 2Q, leaving the opportunity for annual ARR growth in 2019 of ~25%.

Revenue guidance for 4Q appears conservative only representing a $1M increase above consensus. The analyst thinks this outperformance will continue in future quarters stating "We see revenue continuing to accelerate in 4Q and into 2020, driven by an ARPU uplift from the recent price increases". No change to the Buy rating.

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