Dropbox Needs Stronger SMB And User Growth Signals, Analysts Say
Portfolio Pulse from Anusuya Lahiri
Dropbox Inc (NASDAQ:DBX) reported better-than-expected Q2 financial results, leading to mixed analyst reactions. Goldman Sachs reiterated a Sell rating with a lowered price target, while RBC Capital Markets maintained an Outperform rating. Key concerns include user growth, SMB choppiness, and security incidents.
August 09, 2024 | 4:20 pm
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Dropbox Inc (NASDAQ:DBX) reported better-than-expected Q2 financial results, leading to mixed analyst reactions. Goldman Sachs reiterated a Sell rating with a lowered price target to $20, citing concerns over user growth, SMB choppiness, and security incidents. RBC Capital Markets maintained an Outperform rating with a price target of $32, highlighting profitability and decent revenue and ARR beats.
The mixed analyst reactions indicate uncertainty in the short-term price direction. While RBC Capital Markets is optimistic about profitability and revenue beats, Goldman Sachs highlights concerns over user growth, SMB choppiness, and security incidents. This creates a neutral short-term outlook for DBX.
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