Potential Growth for Box, DocuSign, and Asana Foreseen in Upcoming Periods: Microsoft Report suggests as much
Morgan Stanley has expressed optimism for the coming quarters for tech giants Box, DocuSign, and Asana. The investment bank believes that the improving U.S. market, driven by factors such as easing tariffs, potential deregulation, tax legislation, and a focus on growth and earnings, could create a favorable environment for these companies.
The easing of trade tensions allows investors to shift their attention towards company fundamentals, including earnings growth. Possible deregulation and tax legislation in the U.S. could provide a positive boost to corporate profits and investor sentiment.
Broader thematic opportunities, such as the integration of AI into software products, could enhance productivity and create premium features for these cloud and software service providers.
Although Morgan Stanley's direct commentary on these three companies is limited, the overall macro environment focusing on growth, innovation, and regulatory relief is favourable for technology and SaaS companies like Box, DocuSign, and Asana.
Box and DocuSign
Morgan Stanley sees potential upside in the second-quarter for both DocuSign and Box. DocuSign is coming up against an easy comparable in the second-quarter compared to the year-ago quarter, which could lead to positive results. Box, on the other hand, could see upside in the coming quarters, according to Morgan Stanley.
However, there may not be a significant raise to DocuSign's fiscal 2026, according to Morgan Stanley, while no specific mention was made about a potential significant raise to Asana's fiscal 2026.
Asana
While Asana could potentially report upside in the second-quarter, its guidance for the second-half of fiscal 2026 is concerning, according to Morgan Stanley. The company has more moving pieces and wrongs-to-right compared to Box.
Morgan Stanley has an Equal-Weight rating on both Asana and Box. The investment bank views that wait for greater growth visibility before turning more positive on Zoom. Although Zoom could offer a "stronger beat" in its upcoming quarterly results, any "durable acceleration" is likely further out.
In contrast to Box and Asana, Morgan Stanley's analysts view that Box has the clearest momentum and best setup in Q2/FY26. Several other analysts have recently upped their estimates for Box, further supporting this view.
In conclusion, Morgan Stanley's outlook suggests that the tech sector, including Box, DocuSign, and Asana, could see growth in the coming quarters. However, each company presents its own unique challenges and opportunities, and investors should consider these factors when making investment decisions.
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