Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on RPD stock, giving a Hold rating on February 11.
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Shrenik Kothari has given his Hold rating due to a combination of factors, primarily reflecting Rapid7’s current growth trajectory and market positioning. Despite the company’s Detection and Response (D&R) segment showing robust performance, with annual recurring revenue (ARR) surpassing $400 million and growing in the mid-teens, the vulnerability management (VM) segment is experiencing pressures that dampen the overall growth outlook. The company’s fiscal year 2025 ARR guidance of 4-6% growth suggests cautious assumptions, indicating a measured approach amid these challenges.
Moreover, while Rapid7’s Exposure Command is gaining traction and showing promising pipeline growth, its significant impact is expected in the latter half of the year. The company’s path to accelerating growth appears heavily reliant on aggressive go-to-market strategies and investments. Additionally, Rapid7’s guidance reflects a stable but uncertain customer spending environment, particularly within specific public sector and healthcare segments. These elements collectively contribute to the Hold rating, as the company navigates both opportunities and challenges in its strategic investments and market engagement.
In another report released on February 11, Barclays also maintained a Hold rating on the stock with a $43.00 price target.