JPMorgan has increased its price target for Box (BOX, Financial) from $37 to $39, while continuing to assign an Overweight rating to the company's shares. According to analyst Pinjalim Bora, Box has had a robust start to the year, as evidenced by improving forward-looking metrics. The firm suggests that Box's guidance incorporates a degree of conservatism, which may position the company well in the current market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Box Inc (BOX, Financial) is $37.74 with a high estimate of $45.00 and a low estimate of $24.00. The average target implies an upside of 19.99% from the current price of $31.45. More detailed estimate data can be found on the Box Inc (BOX) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Box Inc's (BOX, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Box Inc (BOX, Financial) in one year is $34.30, suggesting a upside of 9.06% from the current price of $31.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Box Inc (BOX) Summary page.
BOX Key Business Developments
Release Date: May 27, 2025
- Revenue: $276 million, up 4% year over year, 5% in constant currency.
- Operating Margin: 25.3%.
- EPS: $0.30, $0.04 above guidance.
- Gross Margin: 80.5%, up 30 basis points year over year.
- RPO (Remaining Performance Obligations): $1.5 billion, up 21% year over year.
- Billings: $242 million, up 27% year over year.
- Net Retention Rate: 102%.
- Free Cash Flow: $118 million.
- Cash and Equivalents: $792 million.
- Share Repurchase: 1.6 million shares for approximately $50 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Box Inc (BOX, Financial) reported a 4% year-over-year revenue growth in Q1, with a 5% increase in constant currency.
- The company achieved a 21% year-over-year growth in remaining performance obligations (RPO), indicating strong future revenue potential.
- Operating margins were reported at 25.3%, with earnings per share (EPS) of $0.30, exceeding guidance by $0.04.
- Box Inc (BOX) saw strong adoption of its Enterprise Advanced product, driven by AI-driven workflows and content management.
- The company announced significant AI partnerships and integrations, including with Microsoft 365 CoPilot, IBM watsonx Orchestrate, and ChatGPT, enhancing its AI capabilities and market presence.
Negative Points
- Despite strong Q1 results, Box Inc (BOX) expressed caution due to macroeconomic uncertainties, which could impact IT spending and future growth.
- The company experienced a 1% decrease in constant currency billings guidance for the full fiscal year, reflecting a more conservative outlook.
- Box Inc (BOX) noted that seat growth is minor and pricing improvements are the primary driver of revenue growth, indicating potential challenges in expanding user base.
- Early renewals contributed significantly to Q1 results, which may not be sustainable in future quarters, affecting revenue consistency.
- The federal vertical remains dynamic, with potential caution in spending, although the recent FedRAMP High certification could mitigate some challenges.
