Dropbox stock gains after Instinet ends bearish call

Instinet analyst Chris Eberle on Tuesday upgraded Dropbox Inc.'s stock to neutral from reduce. The stock is up 0.2% in morning trading. "While we don't believe Dropbox is out of the woods yet, we do feel that, near term, the stock is in a more balanced risk/reward state," he wrote. "Longer term, we continue to believe Dropbox will struggle to transform into an enterprise offering, but near term, with Dropbox still converting several hundred thousand users to paying subscribers, we believe this removes some near-term catalysts to the downside." He remains concerned about recent departures in the company's "business" group, but he thinks that the stock price currently reflects risks stemming from that turnover. Eberle raised his price target to $25 from $21. Dropbox shares are down 20% over the past three months, while the S&P 500 has gained 7.2%.

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