Software Stocks: Box and Navan Lead After Citi Investor Meetings

3-line summary

• Citi analyst Steven Enders named Box (buy, $40 price target) and Navan (buy/high-risk, $28 price target) as top application-software picks following investor meetings during Citi's software bus tour, according to Investing.com. Box's Enterprise Advanced upgrade pricing has reached the upper end of a 30-40% range, with about a third of upgrades including added seats; growing CISO involvement is strengthening the security pitch, and net revenue retention is improving faster than expected. Consumption-based revenue from agentic AI adoption is about 5% of total revenue with a path to 10%, with implementation (not model performance) cited as the main adoption hurdle.
• Navan CFO Aurelien Nolf said second-quarter bookings hit an all-time high, about 30% above the prior record, with the largest customer contract signed after quarter-end. Trailing-12-month new gross bookings value reached $4 billion, up 60% year-over-year, though large-customer deployments take 7-8 months to fully show in results. Navan's AI agent Ava now handles about 60% of customer support interactions, up from about 40% a year earlier, with room to improve gross margins; the company also sees monetization opportunities beyond travel through payments and its BoomPop acquisition.

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