UPDATE: JPMorgan Upgrades Box, Inc. (BOX) to Neutral
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JPMorgan analyst Mark Murphy upgraded Box, Inc. (NYSE: BOX) from Underweight to Neutral with a price target of $28.00 (from $22.00).
The analyst comments "We are upgrading shares of BOX to Neutral from Underweight and revising our Dec 22 price target to $28.from $22. Over the last two and a half years since we downgraded the stock, Box shares have slightly underperformed the market (Box +63% vs. IGV +64%). Our Underweight thesis was largely based on a fierce competitive environment especially against the likes of Microsoft and the likelihood of a subset of Box customers switching to Microsoft over time, coupled with a seemingly inefficient business model with negative growth plus margin at the time. While the competitive threat still persists, Box has executed well against the competitive backdrop, and its profitability profile has changed markedly over this period of time, diluting our thesis. Now, as Box embarks on revenue acceleration into the low-to-mid teens with expanding margins and improving churn, we see the risk reward as much more balanced at current price levels, informing our rating change."
Shares of Box, Inc. closed at $26.00 yesterday.
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