Scotiabank Forecasts Strong Price Appreciation for Rapid7 (NASDAQ:RPD) Stock

Key Points

• Scotiabank raised its Rapid7 price target to $14.50 from $10.15 but maintained a “sector perform” rating; the target implies 6.79% downside from the prior close.
• Rapid7 beat third-quarter earnings and revenue estimates, reporting adjusted EPS of $0.60 versus $0.46 expected and revenue of $212.4 million versus $209.05 million expected.
• Revenue declined 2.5% year over year, and analyst sentiment remained cautious: MarketBeat reported an average “Reduce” rating and an average price target of $13.32.

Rapid7 (NASDAQ:RPD - Get Free Report) had its price target raised by research analysts at Scotiabank from $10.15 to $14.50 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "sector perform" rating on the technology company's stock. Scotiabank's price target indicates a potential downside of 6.79% from the stock's previous close.

Several other equities research analysts have also commented on RPD. Robert W. Baird increased their price objective on shares of Rapid7 from $8.00 to $10.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $12.00 target price on shares of Rapid7 in a report on Tuesday, August 11th. Wall Street Zen raised Rapid7 from a "hold" rating to a "buy" rating in a report on Saturday, October 3rd. Mizuho increased their price target on Rapid7 from $11.00 to $13.00 and gave the company a "neutral" rating in a research report on Thursday, October 15th. Finally, JPMorgan Chase & Co. lowered Rapid7 from a "neutral" rating to an "underweight" rating and set a $12.00 price target on the stock. in a report on Tuesday, September 15th. One research analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $13.32.

Rapid7 Stock Up 3.4%

RPD traded up $0.52 during midday trading on Thursday, reaching $15.56. 2,172,001 shares of the company were exchanged, compared to its average volume of 2,099,747. The company has a market cap of $1.05 billion, a price-to-earnings ratio of 50.54 and a beta of 0.90. Rapid7 has a one year low of $4.97 and a one year high of $18.56. The company's fifty day moving average price is $13.07 and its 200 day moving average price is $9.55. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.80 and a current ratio of 0.80.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The technology company reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.14. The company had revenue of $212.40 million for the quarter, compared to analyst estimates of $209.05 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The company's revenue for the quarter was down 2.5% on a year-over-year basis. During the same quarter last year, the company earned $0.57 earnings per share. As a group, analysts expect that Rapid7 will post 0.76 EPS for the current year.

Hedge Funds Weigh In On Rapid7

Several institutional investors and hedge funds have recently bought and sold shares of the company. Bank of America Corp DE purchased a new stake in shares of Rapid7 during the second quarter worth $6,861,000. Bank of New York Mellon Corp purchased a new position in shares of Rapid7 in the second quarter valued at $3,844,000. Man Group plc bought a new stake in shares of Rapid7 during the 2nd quarter valued at $3,409,000. Pacer Advisors Inc. raised its stake in shares of Rapid7 by 24.3% during the 1st quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock valued at $2,589,000 after purchasing an additional 91,905 shares during the period. Finally, Hsbc Holdings PLC raised its stake 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 purchasing an additional 117,000 shares during the period. 95.66% of the stock is owned by institutional investors.

More Rapid7 News

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 reported third-quarter adjusted earnings of $0.60 per share, above the $0.46 consensus, and revenue of $212.4 million, topping estimates of $209.05 million. Quarterly earnings results
• Positive Sentiment: Piper Sandler raised its price target to $20 from $12, implying potential upside from the quoted share price, though it maintained a neutral rating. Piper Sandler rating
• Neutral Sentiment: Rapid7 forecast fourth-quarter adjusted EPS of $0.53–$0.55; the provided report does not include analyst expectations for comparison. Fourth-quarter guidance
• Neutral Sentiment: Truist raised its target to $15 from $10 but reiterated a hold rating; the new target is below the quoted share price. Truist rating
• Negative Sentiment: Third-quarter revenue was down 2.5% from a year earlier, tempering the impact of the earnings and sales beats. Barclays also kept an underweight rating despite lifting its target to $14, below the quoted share price. Barclays rating

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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