In a report released today, Steve Enders from Citi reiterated a Hold rating on Dropbox, with a price target of $30.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Steve Enders has given his Hold rating due to a combination of factors impacting Dropbox’s financial outlook. Despite a strong third-quarter performance with better-than-expected revenue and earnings before interest and taxes (EBIT), Dropbox’s annual recurring revenue (ARR) fell short of expectations, which raises concerns about its growth trajectory. The company has shown positive signs with improved retention trends and the successful launch of the Dash self-serve motion, but these have been offset by challenges in the FormSwift and Teams managed business segments.
Enders remains cautious about Dropbox’s core small and medium-sized business (SMB) trends, even though revenue excluding FormSwift has returned to growth. The company’s initial outlook for 2026, which anticipates flat operating margins and no revenue growth, is seen as disappointing. While Dropbox has raised its 2025 revenue guidance and improved its EBIT margin, the lack of a clear growth path in the near term justifies the Hold rating. Additionally, the company faces rising interest expenses and has not raised its 2026 margin expectations, which contributes to the cautious stance.
In another report released on October 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $30.00 price target.