Jefferies Upgrades Dropbox (DBX) to Buy on Valuation and Execution

(Updated - July 20, 2020 5:15 AM EDT)

(updating comment)

Jefferies analyst Brent Thill upgraded Dropbox (NASDAQ: DBX) from Hold to Buy with a price target of $28.00 (from $22.00).

The analyst comments "We are upgrading Dropbox to a Buy for three reasons - it trades at an attractive discount, it is a WFH beneficiary with impressive top of-funnel metrics, and it has shown it can deliver on margin goals. DBX trades at a 54% discount - 4.2x 2020E revs. vs. comp group at 9.0x, and is a unique story in software with solid DD% rev. growth combined with bottom line seeing 1000 bps.+ leverage over the next 4 yrs heading to LT target of 28-30% by 24. Our checks substantiate the top of the funnel metrics mgmt. cited."

For an analyst ratings summary and ratings history on Dropbox click here. For more ratings news on Dropbox click here.

Shares of Dropbox closed at $20.83 yesterday.

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