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Box Inc. Stock Soars as Analysts Boost Price Targets on Earnings Beat

Box Inc. has strung together three impressive quarters this year, with each better than the last, one analyst says.
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Analysts raised their price targets for Box Inc.  (BOX) - Get Box, Inc. Class A Report Wednesday after the cloud content management platform beat Wall Street's third-quarter earnings forecasts. 

Shares of the Redwood City, Calif. company were skyrocketing 14.1% to $26.69 at last check.

Box reported earnings of 22 cents a share, up from 20 cents a year ago, and surpassing the FactSet consensus of 21 cents a share. Revenue totaled $224 million, up 14% from a year ago, and beating the FactSet consensus of $218.6 million.

The company said it expects fourth-quarter revenue to range from $227 million to $229 million, up 15% year-over-year at the high-end of the range. The FactSet consensus calls for revenue of $227.6 million.

Full year revenue is expected to range from $868 million to $870 million, up 13% year-over-year at the high-end of the range. FactSet is calling for revenue of $867.1 million.

Craig-Hallum analyst Chad Bennett raised his price target on Box to $38 from $31, while keeping a buy rating, according to the Fly.

Bennett noted the company delivered its third quarter of top-line acceleration, stringing together "three impressive quarters this year," with each better than the last.

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Morgan Stanley analyst Josh Baer boosted his price target to $30 from $29 and maintained his equal weight rating.

Baer said his estimates moved higher after the report, and he continues to see "modest upside" for Box shares given strong execution and accelerating growth. 

The analyst said he stayed at equal weight on a relative basis, given more significant upside elsewhere among the stocks he covers.

Raymond James analyst Brian Peterson boosted his price target to $30 from $29 and reiterated his outperform.

Peterson said the rating follows an "impressive" third-quarter report that accelerated several key growth metrics, especially billings, which jumped 25% from a year ago to $231.5 million.

The analyst said Box's efforts to sell back into its installed base have "clearly improved." 

He added that he believes "the path towards incremental shareholder value has become increasingly clear" following the quarterly results and $200 million expansion of its stock buyback program.