Box (BOX) posted an in-line Q3 with steady execution across billings, margins and free cash flow, but the company still lacks meaningful growth catalysts to shift investor sentiment, RBC Capital Markets said in a Tuesday note.

The company reported Q3 non-GAAP EPS of $0.31 and revenue of $301.1 million.

RBC said Box's growth profile remains stable rather than accelerating and noted the absence of a "near-term growth catalyst" to drive a re-rating. RBC said it is maintaining its Underperform rating on the stock.

The firm also expects macro headwinds to persist and said it has limited confidence in Box achieving its long-term target of 10% to 15% revenue growth and 34% to 37% operating margins.

RBC also maintained its $26 price target for the stock.

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