Sep. 18 at 3:56 PM
UBS downgraded Box and Dropbox, citing that AI-driven demand isn’t yet strong enough to offset slowing cloud storage growth. Box was cut to Neutral from Buy with a price target of
$36 (previously
$42), as adoption of its Enterprise Advanced plan, including AI tools, remains limited despite customer interest. Dropbox was downgraded to Sell from Neutral with a
$27 target (previously
$29), with weak uptake of its new AI product, Dropbox Dash, and flat storage business spending. UBS expects revenue declines and below-consensus free cash flow through 2027, noting market growth expectations may be overly optimistic.
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