BofA Securities increased its price target for Box to $42 from $39 while maintaining a Buy rating, citing accelerating AI-driven adoption of the company’s content management platform.
The stock last traded at $33.55, implying roughly 25% upside to the new target and approaching its 52-week high of $33.88. Box reported fiscal second-quarter revenue of $321.1 million, exceeding Wall Street’s $319.33 million estimate, with adjusted earnings per share matching forecasts at $0.40. Constant currency revenue growth accelerated for a fifth straight quarter to 11% year-over-year, up from 10% in the prior quarter.
Net retention reached 106%, the highest in 13 quarters, while billing growth rose 9% year-over-year and 11% in constant currency. Gross profit margins remained near 80%, and management raised its fiscal 2027 revenue outlook by $10 million, or 0.8%, following a $2 million earnings beat.
BofA highlighted Box’s Enterprise Advanced tier as a key driver of AI momentum, noting larger deployments, expanded seat counts, and higher per-seat pricing. The firm also pointed to Street estimates for fiscal 2028 and 2029 growth at 8.7% and 8.8%, respectively, as increasingly conservative. BofA’s confidence in Box’s ability to reach the high end of its long-term 10–15% revenue growth target strengthened following the results.
Other analysts followed suit: DA Davidson raised its target to $50, UBS to $37 from $29, while RBC Capital maintained its $26 target and Underperform rating, citing competitive pressures.
