Stephens Starts Dropbox (DBX) at Equal Weight, 'Show Us Growth'

Stephens analyst Brett Huff initiates coverage on Dropbox (NASDAQ: DBX) with a Equal Weight rating, PT $39.00.

The analyst comments "We are initiating coverage of Dropbox (DBX) at Equal-Weight with a $39 PT. We think this is a high-quality, cash-generative business that's turnaround is working, but we want more proof of durable revenue growth. Paying users have grown three straight quarters and Teams licenses turned positive, yet 2Q26 revenue grew only +0.9%, and we think growth, not margins or buybacks, is what re-rates the stock. We believe Dash is a real opportunity and DBX has a shot at being the “good enough” option for SMBs, but it is a crowded, concentrated market and a recent pivot for a brand-new team, so we are waiting on Dash KPIs/metrics/proof-points. We would get more constructive on durable organic growth, early AI monetization, and cross-sell traction."

For an analyst ratings summary and ratings history on Dropbox click here. For more ratings news on Dropbox click here.

Shares of Dropbox closed at $36.25 yesterday.

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