Positive Outlook for Rubrik, Inc.: Buy Rating Justified by Strong RPO Growth and Subscription Revenue

Robert W. Baird analyst Shrenik Kothari maintained a Buy rating on Rubrik, Inc. Class A (RBRK – Research Report) today and set a price target of $76.00.

Shrenik Kothari has given his Buy rating due to a combination of factors including Rubrik, Inc.’s robust growth in remaining performance obligations (RPO), which saw a significant year-over-year increase. This growth indicates strong future revenue potential, as the company expects to recognize a substantial portion of these obligations as revenue in the coming year.
Additionally, the company experienced notable growth in subscription revenue, driven by an increase in subscription annual recurring revenue (ARR) and the successful transition of their sales model. Despite a decrease in revenue from Rubrik-branded Appliances, the overall financial health of the company is supported by strong sales and renewals in regulated and government sectors, as well as a solid contribution from their top channel partners. These factors collectively contribute to a positive outlook for Rubrik, Inc., justifying the Buy rating.

In another report released on March 18, Guggenheim also maintained a Buy rating on the stock with a $80.00 price target.