Box's (BOX) fiscal Q1 results were "solid," and the company's Enterprise Advanced early traction is encouraging, RBC Capital Markets analysts said in a Tuesday note.

Analysts said that Box's net retention rate expansion of 3-points to 105% from a year earlier is encouraging.

Analysts said that while the company needs to be given credit for identifying the opportunity in Japan and investing in the channel accordingly, these market dynamics were unique and are unlikely to be repeated in other regions.

RBC added that even in Japan, the runway is now more limited and that the competitive environment is expected to worsen.

Analysts retained an underperform rating and $26 price target on the stock.

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