Wall Street isn’t concerned about recent price decline
Dropbox (DBX) stock has been highly volatile in August 2018. However, analysts are not overly concerned about the recent price decline in Dropbox stock. Wall Street believes the departure of chief operating officer Dennis Woodside has been overblown and expects Dropbox to rebound from this temporary setback. Canaccord Genuity analyst Richard Davis stated, “This is like putting a beach ball underwater. It will pop up.”
Davis attributed the recent turbulence in Dropbox’s stock price to the lack of clarity for investors with regards to a new publicly listed company. Davis has a price target of $38 for Dropbox.
While J.P. Morgan (JPM) analyst Mark Murphy claimed “losing COO Dennis Woodside is a bit of a disappointment” for Dropbox, the analyst remains optimistic about the stock with a price target of $35.
Average analyst price target
12 analysts are tracking Dropbox. While seven have a “buy” recommendation, four recommend a “hold,” and one recommends a “sell.” Analysts have an average price target of $35.23 for Dropbox, indicating that the stock is trading at a discount of 30% to average estimates.
Analysts have a low price target of $21 and a high price target of $40 for Dropbox.