Rapid7 price target raised to $28 from $26 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Rapid7 (RPD) to $28 from $26 and keeps an Equal Weight rating on the shares. 4% ARR growth and declining margins are “unlikely to yield much fundamental excitement from investors,” but the current valuation of shares “likely undervalues” the strategic value of a greater than $400M ARR Detection and Response business growing mid-teens, the analyst tells investors in a post-earnings note.