William Blair analyst Jonathan Ho has maintained their bullish stance on RPD stock, giving a Buy rating today.
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Jonathan Ho has given his Buy rating due to a combination of factors that highlight Rapid7’s potential for growth despite some current challenges. The company reported a strong quarter with billings, revenue, and pro forma EPS surpassing both the firm’s and market expectations. However, Rapid7 adjusted its ARR guidance downward, reflecting uncertainties in the timing of larger deals, which are becoming more complex as the company targets multiproduct agreements.
Despite these challenges, there is a noticeable increase in demand for Rapid7’s platform solutions, as customers are increasingly valuing the comprehensive offerings of the platform over individual products. The company’s detection and response product showed significant growth, contributing to over half of the company’s ARR. The early success of the Exposure Command platform and the bundling strategy suggest that Rapid7’s platform approach is gaining traction in the market. This strategic direction is expected to facilitate cross-selling opportunities and potentially reaccelerate business growth in the future.
According to TipRanks, Ho is a 4-star analyst with an average return of 9.2% and a 50.41% success rate. Ho covers the Technology sector, focusing on stocks such as Tyler Technologies, Rapid7, and Fastly.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $27.00 price target.