Dropbox: Jefferies upgrades to 'buy' on valuation grounds

(CercleFinance.com) - Analysts at Jefferies have upgraded Dropbox from "hold" to "buy" on valuation grounds, which has prompted the shares to jump by 5% today.


In a note sent to clients, the broker said that the shares are trading 16% below their level last week and that they are now "attractively valued."

Dropbox shares have tumbled recently, with the cloud platform set to report financial results for the second quarter ended 30 June after the market closes on Thursday 9 August.

"Given Dropbox's attractive FCF profile - unique even within SaaS - we continue to view this attractive, sustainable model as unique in software," Jefferies said, maintaining a target price of 32 dollars.

Shares of the San Francisco-based company are currently trading 5% higher at 28.1 dollars Wednesday on the Nasdaq.

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