DBX - Dropbox: Returning To IPO Opening Price With More Upside To Come
- Dropbox's long-term sustainable growth model could yield consistent 10%+ revenue growth and 15%+ EPS growth for the next 5+ years.
- With opportunities to further expand their paid users in addition to upselling to premium plans, there is plenty of room left for growth.
- Recent rumors of activist hedge fund Elliott Management taking a sizable position in the company could fuel rumors of a potential take-out.
- Valuation looks very attractive at only 5.5x forward revenue and 23x forward EPS and a path towards a $40 stock in 12-18 months is highly achievable.
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Dropbox: Returning To IPO Opening Price With More Upside To Come