Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on RBRK stock, giving a Buy rating on September 4.
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Shrenik Kothari has given his Buy rating due to a combination of factors including Rubrik, Inc.’s robust financial performance and strategic positioning. The company reported a strong fiscal quarter with notable increases in both Net New Annual Recurring Revenue (NNARR) and Annual Recurring Revenue (ARR), surpassing market expectations. This growth is further supported by a significant rise in Cloud ARR and an impressive free cash flow margin, indicating operational efficiency and leverage.
Moreover, Rubrik’s expansion into identity management and AI products, along with its traction in the FedRAMP space, highlights its potential for long-term differentiation in the market. The company’s valuation remains attractive at approximately 9x EV/CY27E, considering its execution capabilities and margin improvements. The management’s outlook on maintaining leadership in the cyber resilience sector and exploring opportunities in the enterprise AI market further solidifies the positive sentiment. Overall, these factors contribute to the compelling risk/reward profile that underpins Kothari’s Buy rating.
In another report released on September 4, Barclays also maintained a Buy rating on the stock with a $115.00 price target.