DBX - Dropbox rises as BofA sets new buy rating on cloud-storage leader

• Dropbox ( NASDAQ: DBX ) shares climbed more than 3% Tuesday as Bank of America analyst Michael Funk initiated his coverage of the cloud-storage company with a buy rating, due in part to its "free cash flow flywheel."
• Funk also set a $34-a-share price target on Dropbox's ( DBX ) stock and said the company's shares are "attractive" due to the company's free cash flow generation and ability to delivery "potential incremental returns" to its shareholders.
• Funk said that Dropbox ( DBX ) isn't a "sexy, high growth" software stock, but that's not necessarily a negative for the company. Along with more than 30% free cash flow margins and the ability to return capital to its investors, Funk said Drop box ( DBX ) "has a large existing user base" that sets it up in strong position in a total addressable market that worth $16.6B.
• Wall Street analysts and Seeking Alpha authors both have a buy rating on Dropbox's ( DBX ) stock, while Seeking Alpha's quant system, which regularly outperforms the stock market, has a hold rating on Dropbox's ( DBX ) shares.

For further details see: