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 suggest potential for future growth despite recent challenges. Although Rapid7 experienced a disappointing quarter with its annual recurring revenue (ARR) growth falling short of expectations, the company is taking a cautious approach by adjusting its guidance to reflect current macroeconomic uncertainties. This prudent action indicates that Rapid7 is aware of the complexities in the market and is positioning itself accordingly.
Furthermore, Jonathan Ho points out that the detection and response segment of Rapid7’s business continues to demonstrate strong demand, which is a positive indicator for future performance. Additionally, while the risk and exposure management and cloud businesses face challenges, their stabilization could contribute to overall company success. Despite concerns over the vulnerability management (VM) segment, which has been declining for years, Rapid7 is strategically shifting focus to areas with greater economic potential. This strategic repositioning, along with revenue and earnings per share exceeding expectations, supports the Buy rating.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $35.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RPD in relation to earlier this year.