UBS increased its price target on Box Inc. to $37 from $29 while maintaining a Neutral rating, citing accelerating revenue growth and early signs of AI-driven demand.
The upgrade follows Box’s fiscal second-quarter results, which exceeded Wall Street expectations. Revenue reached $321.1 million, surpassing the consensus estimate of $319.33 million. Adjusted earnings matched analyst projections at $0.40 per share. On a constant-currency basis, revenue grew 11%, up from 7% in the prior-year period, while billings expanded 16%, compared with 13% in the first quarter of fiscal 2027.
UBS highlighted Box’s improving operational metrics, including a net revenue retention rate of 106% and remaining performance obligations growth of 14% constant currency. Gross profit margin remained near 80%, underscoring the company’s pricing power and cost discipline.
The analyst firm noted that Box is among a select group of software companies showing measurable AI-related revenue contributions. Enterprise Advanced, the company’s core offering, continues to drive growth through pricing adjustments and seat expansion. However, UBS maintained its Neutral rating pending further evidence that the current momentum can persist through the second half of fiscal 2027 and into fiscal 2028.
Box shares, which closed at $33, have gained 38% over the past six months. InvestingPro estimates a fair value of $36.14, labeling the stock as undervalued. The 52-week high stands at $33.88.
UBS’ outlook for the second half of fiscal 2027 suggests a moderation to 10–11% constant-currency revenue growth and 8–9% billings growth, a view the firm considers conservative with potential upside.
