Oppenheimer Remains Bullish on Box (BOX) Following 2Q16 Results
Oppenheimer reiterated an Outperform rating and $21.00 price target on Box, Inc. (NYSE: BOX) following the company's 2Q16 earnings results. Box's sales came in ahead of expectations at $73.5M vs. $69.7M. EPS was reported at ($0.28), 1c ahead of consensus.
Analyst Ittai Kidron commented, "Box reported a strong July-quarter (2Q-FY16) ahead of Street-expectations with continued good traction in several key areas. Net-retention (121%) and net-expansion (25%) rates remained healthy, customer/user churn remained low (4%), and the company is building a strong position with larger customers/enterprises as seen in the 33 deals above $100,000 vs. 21 a year ago. IBM's addition as a partner is likely to yield upside in FY17 and we see it as a significant addition that could accelerate Box's gains with larger enterprise/internationally. With content expansion/upsell opportunities, such as those with EKM and governance ahead, we believe expansion rates could stabilize if not expand periodically. Overall, Box is executing consistent with our thesis and leaves us positive on its growth opportunities. We remain buyers."
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Shares of Box, Inc. closed at $14.25 yesterday.