NEW YORK (TheStreet) -- JMP Securities began coverage of Box (BOX) - Get Report stock with a "market outperform" rating and an $18 price target on Tuesday.

"Box is a leader in this burgeoning cloud market and despite executing well overall since its IPO in January 2015, the stock remains roughly at its IPO price of $14," the firm said in an analyst note.

The firm thinks Box's multiple should expand as investors grow to appreciate: the catalyst of free cash flow turning positive in a year, a weakening competitive environment, a long runway of 25% plus growth and the significant leverage in the model, especially in sales and marketing.

The Redwood City, CA-based company provides a cloud-based, mobile-optimized enterprise content collaboration platform and enables organizations to manage their content.

Shares of Box closed up by 2.14% to $14.35 on Tuesday.

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