UPDATE: Drexel Hamilton Starts Box, Inc. (BOX) at Buy

Drexel Hamilton initiated coverage on Box, Inc. (NYSE: BOX) with a Buy rating and a price target of $18.00. Analyst Brian J. White said Box is positioned well.

"In our view, Box is one of the more under-appreciated and misunderstood cloud plays in the market today; however, we believe this will change as the company shows continued momentum in the enterprise market and Box Platform ramps in FY:17," said White.

"Box plays right into the “generational change” (Mark Hurd, CEO of Oracle) taking place in the IT world with the shift of IT resources into the cloud, combined with the rise of digital platforms in the workplace and the proliferation of mobile. " added the analyst. "...Growing sales by 95% per annum over the past four calendar years and delivering 40% growth in FY:16 with a high levels of recurring revenue, we believe Box is undervalued at current levels and trades at an EV/revenue ratio (CY:16 revenue) of just 3.5x.

For an analyst ratings summary and ratings history on Box, Inc. click here. For more ratings news on Box, Inc. click here.

Shares of Box, Inc. closed at $12.26 yesterday.

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