Box downgraded to Underperform from Sector Perform at RBC Capital

RBC Capital analyst Rishi Jaluria downgraded Box to Underperform from Sector Perform with a price target of $24, down from $28. The company’s turnaround has been "impressive" with 2,200 bps of operating margin expansion since FY20 and growth acceleration led by Suites and Japan, but after the stock has registered a positive return in 2022, he is concerned about the "sustainability of this turnaround", the analyst tells investors in a research note. Jaluria adds that as industry checks indicate growth in Japan could continue to slow, he expects the competitive environment to worsen in that market.