Monday morning brought upgrades of Monday.com Ltd. and Box Inc. , as JPMorgan analyst Pinjalim Bora expressed rosier views of the two software companies. Bora said that he was “a little bit cautious on the deteriorating macro environment and its potential impact on the company” when he assumed coverage of Monday shares back in May, but he now feels better recommending the project-management name. “[H]aving seen the relative resiliency in the business in the face of a tough macro backdrop and the solid execution by management over the last two quarters, in addition to the stock coming back closer to our initial entry levels, we are now more comfortable moving to an overweight position,” he wrote, as he lifted his rating from neutral. Bora also upgraded Box shares to overweight from neutral, writing that the software company “has done a really good job” in developing a single platform for the content lifecycle and investing heavily in an attempt to stay ahead of competitive threats. “We think one critical aspect behind its success is the bundling strategy (or Suites), which has helped Box to not only monetize but also drive adoption of the broader platform, expanding average revenue per customer and driving sales productivity higher,” he wrote. Shares of both names were ahead more than 3% in Monday’s premarket action.
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