Rapid7 (NASDAQ:RPD) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS raised its Rapid7 price target from $12 to $19 but maintained a neutral rating; the new target implies 23.06% upside from the previous close.
• Analyst views remain cautious overall: MarketBeat reports a consensus “Reduce” rating and an average price target of $13.92, with 17 Hold and five Sell ratings.
• Rapid7 beat Q3 earnings and revenue estimates, reporting EPS of $0.60 and revenue of $212.4 million, though revenue was down 2.5% year over year.

Rapid7 (NASDAQ:RPD - Get Free Report) had its price target boosted by investment analysts at UBS Group from $12.00 to $19.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the technology company's stock. UBS Group's price target would suggest a potential upside of 23.06% from the stock's previous close.

RPD has been the subject of several other reports. Stifel Nicolaus lifted their price target on Rapid7 from $7.00 to $13.00 and gave the stock a "hold" rating in a report on Tuesday, August 11th. Scotiabank increased their price objective on Rapid7 from $10.15 to $14.50 and gave the stock a "sector perform" rating in a research report on Thursday. Royal Bank Of Canada lifted their target price on Rapid7 from $12.00 to $16.00 and gave the stock a "sector perform" rating in a report on Thursday. Susquehanna lifted their target price on Rapid7 from $7.00 to $15.00 and gave the stock a "neutral" rating in a report on Wednesday, August 12th. Finally, Piper Sandler boosted their target price on shares of Rapid7 from $12.00 to $20.00 and gave the company a "neutral" rating in a research report on Thursday. One investment analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $13.92.

Rapid7 Stock Performance

Shares of RPD traded up $0.40 during trading hours on Thursday, hitting $15.44. The company had a trading volume of 2,935,920 shares, compared to its average volume of 2,103,889. The firm has a market cap of $1.04 billion, a price-to-earnings ratio of 49.81 and a beta of 0.90. The business has a fifty day moving average of $13.07 and a 200-day moving average of $9.55. Rapid7 has a 12 month low of $4.97 and a 12 month high of $18.56. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The technology company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.14. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The firm had revenue of $212.40 million during the quarter, compared to the consensus estimate of $209.05 million. During the same period last year, the business posted $0.57 earnings per share. The business's revenue for the quarter was down 2.5% compared to the same quarter last year. Equities analysts anticipate that Rapid7 will post 0.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Rapid7

Several institutional investors and hedge funds have recently added to or reduced their stakes in RPD. Bank of America Corp DE acquired a new stake in shares of Rapid7 during the 2nd quarter valued at $6,861,000. Bank of New York Mellon Corp bought a new stake in shares of Rapid7 in the 2nd quarter valued at $3,844,000. Man Group plc bought a new position in shares of Rapid7 in the 2nd quarter worth about $3,409,000. Pacer Advisors Inc. lifted its stake in Rapid7 by 24.3% in the first quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock valued at $2,589,000 after buying an additional 91,905 shares during the period. Finally, Hsbc Holdings PLC lifted its position in shares of Rapid7 by 274.1% during the 4th quarter. Hsbc Holdings PLC now owns 159,688 shares of the technology company's stock valued at $2,446,000 after acquiring an additional 117,000 shares during the period. Institutional investors own 95.66% of the company's stock.

Rapid7 News Summary

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 reported Q3 adjusted EPS of $0.60, topping the roughly $0.45–$0.46 consensus, and revenue of $212.4 million, above expectations of $209.05 million. The earnings and sales beats likely supported investor sentiment. Rapid7 Q3 earnings and revenues top estimates
• Positive Sentiment: Piper Sandler raised its price target to $20 from $12, leaving substantial potential upside at its new target, although it kept a neutral rating. Piper Sandler recommendations
• Neutral Sentiment: Several other firms also lifted targets: Citi and RBC to $16, Truist to $15, and Scotiabank to $14.50. Their neutral, sector-perform, or hold ratings suggest analysts see the improved results but remain measured about the outlook. Truist raises Rapid7 price target
• Negative Sentiment: Revenue fell 2.5% from a year earlier, tempering the strong quarterly beat. Barclays maintained an underweight rating with a $14 target, and Scotiabank’s $14.50 target is also below the recent share price, reflecting valuation or growth concerns. Barclays recommendations

About Rapid7

Rapid7, Inc NASDAQ: RPD is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company's product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.

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