Dropbox downgraded to Hold from Buy at Jefferies

Jefferies analyst Brent Thill downgraded Dropbox to Hold from Buy with a price target of $25, down from $28. The analyst sees a "mixed to negative outlook" in the first half of 2023 for software with weakening fundamentals and continued multiple pressure. However, good news is likely to come in the second half of the year with reset multiples and a reacceleration of growth at some point in 2024, Thill tells investors in a research note. He downgraded the shares as part of his 2023 software playbook.