May 16, 2018

BOX – Market expectations are for a positive inflection in Uniform ROA, and management is confident about competition, the Box Platform, and growth


 

      • Box, Inc. (BOX:USA)currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 6.7x Uniform P/B. At these levels, markets are pricing in expectations for Uniform ROA to inflect positively, and management is confident about competition, the Box Platform, and growth
      • Specifically, management generated an excitement marker when saying that their neutral and open architecture are key differentiators that allow them to partner strategically with a wide range of channel and technology partners so they can reach more enterprises around the world. Additionally, they are confident that the OneDrive for Business promotional campaign is not significant to the core competitive dynamic they already face in the market, and that the Box Platform is the basis of the overall conversations they are having with their consumers. Also, they are confident that the acceleration in Salesforce hiring and strong pipeline generation will help them achieve their long-term growth rate target
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