BofA Securities raised its price target on Box Inc. to $42 from $39, citing visible momentum in the company’s artificial intelligence products and sustained revenue acceleration.
The firm maintained a buy rating on the enterprise content management software provider, which was trading at $33.55 at the time of the update, implying roughly 25% upside to the new target. Box reported second-quarter revenue of $321.1 million, exceeding Wall Street’s estimate of $319.33 million, while adjusted earnings per share matched analyst forecasts at $0.40.
Revenue growth accelerated to 11% year-over-year in constant currency terms, marking the fifth consecutive quarter of improvement from 10% in the first quarter. Overall revenue and billings growth rose to 11% in constant currency, up from 9% previously. The company’s net revenue retention rate reached 106%, the highest in 13 quarters, and has increased for two consecutive periods.
Gross profit margins remained near 80%, reflecting the company’s scalable business model. Management also raised its fiscal 2027 revenue guidance by $10 million, or 0.8%, while maintaining a long-term revenue growth target of 10% to 15%.
BofA’s upgrade follows similar revisions from UBS, which lifted its target to $37 from $29, and DA Davidson, which set a $50 target. RBC Capital maintained an underperform rating with a $26 target, citing competitive pressures. Analysts noted that Box’s AI-driven product traction is distinguishing it among software peers, with BofA highlighting the company as one of the few demonstrating clear momentum in the segment.
