Craig-Hallum downgrades Box to Hold, lowers price target to $30

As previously reported, Craig-Hallum downgraded Box to Hold from Buy with a price target of $30, down from $35. Growth at Box is slowing to a halt as customers continue to lower their rate of seat expansion, the firm says. The company reported in-line revenues and missed on billings. The weak billings result portends further deceleration, which is reflected in management’s revised guidance for +8% CC growth in FY24 from +10% prior, Craig-Hallum notes. Further, billings are guided to be flat in Q3 and grow mid-single digits in Q4 to get to +4% billings growth for the year. As such, the firm does not anticipate meaningful growth acceleration in FY25.