Analyst Note
| Malik Ahmed Khan |We are maintaining our fair value estimate for Box of $30 after the firm reported strong third-quarter results slightly above our estimates. While the firm’s financial results have been solid over the last few quarters, we hold our opinion that Box faces an intense competitive landscape marred by legacy ecosystems. While we do not justify an economic moat for Box, the firm has continued to maintain high levels of upselling activity, evidenced by its climbing net retention rate. With shares trading around $27.50 after market close, we believe Box is fairly valued.