Box pops after Q4 beat, J.P. Morgan upgrades on 'risk reward'
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Box (NYSE:BOX) shares rose in premarket trading on Thursday after the file-sharing software company delivered fourth-quarter results that topped expectations, prompting an upgrade from J.P. Morgan.
Analyst Mark Murphy upgraded the stock to neutral from underweight and raised the price target to $28 from $22, noting that the business is accelerating, as evidenced by the most recently reported results.
Murphy explained that while the competitive threat from the likes of Microsoft (NASDAQ:MSFT) and others still persists, the Aaron Levie-led Box has improved its profitability "markedly" since the investment firm downgraded the stock two and a half years ago. 
"Now, as Box embarks on revenue acceleration into the low-to-mid teens with expanding margins and improving churn, we see the risk reward as much more balanced at current price levels, informing our rating change," Murphy wrote in a note to clients.
Box (BOX) shares rose slightly more than 6% to $27.57 in premarket trading.
On Wednesday, Box said it earned an adjusted 24 cents per share on $233.36 million in revenue, compared to estimates of 23 cents and $228.6 million in sales.
Last month, it was reported that hedge fund Starboard Value fund divested its stake in Box (BOX), while adding to other positions.