Rapid7 price target lowered to $10 from $16 at Piper Sandler

Piper Sandler analyst Rob Owens lowered the firm’s price target on Rapid7 (RPD) to $10 from $16 and keeps a Neutral rating on the shares. The firm notes the company delivered modest upside to ARR expectations in Q4, adding about $2M in NNARR to bring ARR growth flat on a year-over-year basis. Detection and response remain the highlight, growing 7% year-over-year, but will likely not be enough to keep total growth positive in 2026. Combined with profitability guidance that calls for the second year of operating margin contraction given investments made in 2025, investors were understandably disappointed coming away from results, argues Piper.