Canaccord Genuity Cuts Price target on Box (BOX) to $18 on Continued Pullback
Canaccord Genuity maintained a Hold rating on Box, Inc. (NYSE: BOX), and cut the price target to $18.00 (from $21.00), on continued pullback on the stock, down 25% since June.
Analyst Richard Davis commented, "Box's pullback over the summer (down 25% since its highs in June) along with its steady stream of product improvements, partnerships and vertically-focused initiatives have helped us to warm up to the name. This quarter was mostly a continued step in the right direction as subscriber adds and financial results were generally strong. The chief knock against Box is its still large FCF losses, and this quarter did little to allay those fears. In a directionless, “all or nothing” tape, we are cautious to push investors into a stock that is still 5-6 quarters away from showing any kind of profits – if investors, for whatever reason, were to pivot towards the perceived safe havens (a move we don’t necessarily expect, in fact we favor the odds of a Q4 growth rally), BOX would likely be a stock that underperforms. Our preference for now is to err on the side of caution; we will continue to watch this story closely and when the time is right, an upgrade might be in store. Thus, we continue to believe that HOLD is still the correct rating on this stock."
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Shares of Box, Inc. closed at $14.25 yesterday.