UBS raised its price target on cloud-storage provider Box Inc. to $37 from $29, citing accelerating revenue growth and sustained momentum in its Enterprise Advanced segment.
The upgrade follows Box’s first-quarter fiscal 2027 results, which reported revenue of $321.1 million, topping Wall Street’s estimate of $319.33 million. Adjusted earnings came in at $0.40 per share, in line with expectations. Revenue growth accelerated to 11% in constant currency, up from 7% in the same period last year, while billings rose 16% in constant currency, compared with 13% in the prior-year quarter.
UBS noted improvements in key metrics, including net revenue retention at 106% and remaining performance obligations growth of 14% in constant currency. The firm highlighted Box’s gross profit margin, which remains near 80%, as a key strength. The stock has gained 38% over the past six months and is trading near its 52-week high of $33.88, closing at $33.47 in regular trading, up 1.7%.
InvestingPro’s fair-value estimate for Box stands at $36.14, while the company’s shares traded at $33.69 in after-hours activity, up 0.66%. UBS maintained a Neutral rating on Box, citing the need for further evidence that the current momentum can be sustained through the second half of fiscal 2027 and into fiscal 2028. The firm also emphasized Box’s position as one of the few software companies demonstrating measurable contributions from artificial intelligence to revenue growth.
For the second half of fiscal 2027, UBS projects revenue growth of 10% to 11% in constant currency and billings growth of 8% to 9% in constant currency, indicating a moderation from the first-half pace.
