![]() ![]() That's after shares have already gained 26% over the past year.īox has been benefiting from the demand for its cloud content management product suite as enterprises are prioritizing the increased need for digital transformation. The average price target stands at $27.20, which reflects upside potential of about 20% over the coming year. The Moderate Buy analyst consensus is based on 4 Buys, 1 Hold and 1 Sell. The rest of the Street has a cautiously optimistic outlook on the stock. However, he cautioned that he “can’t say this with 100% conviction.” Bottom-line, the analyst remains bullish and reiterated a Buy rating on the stock with a price target of $30. According to Hynes, the latter is more likely. Looking ahead, analysts will be focusing on what revenue growth will look like between now and 2024, with the bears anticipating a deceleration to the mid-single digits, while the bulls expect low-double digits growth. "The challenge these days in software is that growth is in vogue, almost irrespective of price, and in that kind of tape, a stock like DBX is going to underperform (ignoring speculation of an M&A buyout),” according to Hynes. After talking to management, Hynes said that a portion of the savings will likely be reinvested in faster-growing parts of the business, like HelloSign.įollowing the latest cost-cutting move, the analyst's view on Dropbox remains “little changed.” 5, 2021.Ĭommenting on the streamlining measures, Canaccord Genuity analyst David Hynes believes that the workforce reduction plan is part of the new CFO Tim Regan’s commitment to meet the company's 2024 profit targets. It also announced the departure of Olivia Nottebohm as COO effective Feb. The company believes that it requires fewer resources to support its in-office environment. 13, Dropbox announced its decision to cut down its workforce by about 11%. The 3Q adjusted EPS doubled to $0.26 compared to the same period last year as the company's adjusted operating margin expanded.Ĭoming now to long-term goals, Dropbox targets an operating margin of 28%-30% and an annual free cash flow of $1 billion in 2024. The 3Q top-line gained from a 9% increase in paying users, a rise in the price of the Plus plan, and a favorable mix of sales from higher-priced subscription plans.įurthermore, ARR (annual recurring revenue) rose 12% to $1.98 billion. The company’s 3Q results beat analysts’ expectations, with revenue growing 13.8% year-over-year to $487.4 million (though the growth rate decelerated compared to 16.4% in 2Q). As of the end of 3Q 2020, Dropbox had about 15.3 million paying users. It boasts over 600 million registered users - including users of the company’s free plan - across 180 countries. Dropbox, which calls itself “the world’s first smart workspace”, is one of the leading players in the cloud storage and content management space. ![]()
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