Dropbox falls after Citi downgrade on growth concerns
DBX•Dropbox shares fell 5% to $32.50 in premarket trading after Citi downgraded the stock to sell from neutral, citing concerns about growth prospects and pressure on its core business.
1. Citi cuts rating
Citi said recent gains had outpaced Dropbox’s underlying business progress and growth prospects. The brokerage said the company’s core business remained under pressure and had yet to show sustained growth despite recent stabilization.
2. Analyst ratings
One of nine brokerages rates Dropbox buy, four rate it hold and four rate it sell or lower. The median price target is $29. The stock was up 23.1% year to date as of its last close.
