Dropbox (DBX) stock climbed Tuesday as at least nine analysts initiated coverage on the relatively new initial public offering, giving it a mix of four buy and five neutral ratings.
The provider of data-storage and business collaboration services won buy ratings from Canaccord Genuity, Deutsche Bank, Macquarie Capital and Piper Jaffray.
Piper Jaffray had the highest price target at 40 per share.
“We believe Dropbox is building a true collaboration platform with content at the core that complements traditional productivity suites like Microsoft (MSFT) Office and Google’s G-Suite,” Alex Zukin, Piper Jaffray analyst, said in a note to clients.
Bank of America, Jefferies, Goldman Sachs, JMP Securities and RBC Capital rated Dropbox neutral or market perform. Dropbox rose 1.2% to 29.39 on the stock market today.
Initial Pop In Shares
The company priced shares at 21 on its IPO on March 23. Shares popped 36% the first day of trading and reached 33.27 on April 12. Dropbox had pulled back to 29 before Tuesday’s gain.
The San Francisco-based company provides a service that lets users store, share and collaborate on documents, photos and other files online. Founded in 2007, Dropbox has more than 500 million registered users and 11 million paying customers. They spend an average of $112 per year.
“What started as cloud storage aimed at the consumer market has gradually and purposely morphed into an enterprise content management and collaboration platform,” Richard Davis, a Canaccord Genuity analyst, said in his report.
“While we believe Dropbox’s total addressable market opportunity is broadening beyond the file sync and share application market,” John DiFucci, Jefferies analyst, wrote in his note.
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