Morgan Stanley analyst Josh Baer named Box (BOX) as "Top Pick" in software among the analyst’s coverage, replacing Smartsheet (SMAR). Box has expanded operating margins from 1% in FY20 to 23% in FY23 and is expecting another 10- 12% operating margin expansion in its long-term targets, notes the analyst, who contends that continued Suite momentum for Box yields larger deals, larger customers, higher pricing, higher gross margins and stronger retention. The firm sees an opportunity for shares to move higher considering improving unit economics and low expectations for future growth and moves Box to Top Pick as a result, said the analyst, who has an Overweight rating and $37 price target on the shares.
Published first on TheFly
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