BofA raises Box stock price target to $42 on AI momentum

BofA Securities has increased its price target for Box, Inc. (NYSE:BOX) to $42, up from $39, while maintaining a Buy rating on the intelligent content management software company. Currently trading at $33.55, this represents approximately a 25% upside potential to the new target, positioning the stock near its 52-week high of $33.88.

Box's financial performance has been stellar, boasting five consecutive quarters of accelerating constant currency revenue growth at 11% year-over-year, surpassing the previous 10% growth rate. The company has also achieved its highest net retention rate in 13 quarters at 106%, indicating strong customer loyalty.

Box's second-quarter results exceeded expectations by $2 million, and management has raised the fiscal 2027 revenue outlook by $10 million, or 0.8%, suggesting a more optimistic second-half outlook. Net revenue retention grew by 1% for the second consecutive quarter, driven by larger deployments, seat expansions, and higher price per seat. BofA Securities believes Box's results bolster confidence in the company's ability to reach its high-end long-term growth target.

The firm highlights Box's impressive gross profit margins of nearly 80% and notes that current stock levels appear undervalued. BofA Securities considers Box one of the few applications vendors showing visible AI product momentum, viewing Street estimates for 8.7% and 8.8% growth in fiscal 2028 and 2029 as increasingly conservative.

Box reported $321.1 million in fiscal second-quarter revenue, surpassing analysts' expectations of $319.33 million, and maintained adjusted earnings per share at $0.40, aligning with forecasts. The company has further raised its full-year outlook, signaling confidence in its continued growth trajectory.