Needham analyst Mike Cikos has maintained their neutral stance on RPD stock, giving a Hold rating today.
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Mike Cikos has given his Hold rating due to a combination of factors impacting Rapid7’s performance. The company reported an Annual Recurring Revenue (ARR) of $837.7 million, which was below both the management’s previous guidance and market expectations. This shortfall highlights challenges in the company’s vulnerability management segment, further exacerbated by difficulties in transitioning customers to their new Exposure Command product.
Additionally, the spending environment remains tough, with larger deals experiencing unpredictable timing, adding to the uncertainty. Rapid7 is undergoing leadership and operational changes, which are expected to limit visibility in the near term. Consequently, the management has adjusted its ARR outlook for the upcoming year to regain investor confidence, reflecting the cautious stance that justifies the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $18.00 price target.