In a report released yesterday, Andrew Nowinski from Wells Fargo reiterated a Buy rating on Rubrik, Inc. Class A, with a price target of $125.00.
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Andrew Nowinski has given his Buy rating due to a combination of factors that highlight Rubrik, Inc.’s potential for growth and stability in the market. One of the primary reasons is the expected modest upside in Subscription Annual Recurring Revenue (ARR), which is projected to be slightly above consensus estimates. Despite a year-over-year decline in net new ARR due to changes in the sales compensation plan, this should not be seen as a sign of reduced demand.
Another factor influencing the Buy rating is the recent acquisition of Predibase, which is anticipated to enhance Rubrik’s ARR outlook for the fiscal year 2026. The launch of a new product, Agent Rewind, based on Predibase technology, is expected to contribute to ARR starting in the third quarter of 2026. Furthermore, the competitive landscape remains stable, with Rubrik maintaining its position as a leading solution in the market, as evidenced by recent industry analyses. Although there is a short-term suppression in contribution margins due to increased R&D investments, these are aimed at supporting new product developments, which are likely to drive future growth.
Nowinski covers the Technology sector, focusing on stocks such as Fortinet, Cloudflare, and Varonis Systems. According to TipRanks, Nowinski has an average return of 16.2% and a 55.49% success rate on recommended stocks.
In another report released on August 27, Guggenheim also maintained a Buy rating on the stock with a $108.00 price target.