Scotiabank Has Negative Outlook of Rapid7 FY2027 Earnings

Key Points

• Scotiabank cut its FY2027 EPS estimate for Rapid7 to $0.59 (from $0.60) and assigns a Sector Perform rating with a $7 price target.
• Several other analysts have trimmed targets and ratings, leaving a MarketBeat consensus average rating of Reduce and an average target price of $9.39.
• Rapid7 beat Q1 estimates with EPS of $0.36 (vs. $0.30) and revenue of $209.7M, but revenue was down 0.3% year‑over‑year and management guided FY2026 EPS to $1.52–$1.60 while the stock trades near $6.57 (market cap ≈ $439M).

Rapid7, Inc. (NASDAQ:RPD - Free Report) - Investment analysts at Scotiabank reduced their FY2027 earnings per share (EPS) estimates for shares of Rapid7 in a report released on Wednesday, May 6th. Scotiabank analyst P. Colville now forecasts that the technology company will earn $0.59 per share for the year, down from their previous forecast of $0.60. Scotiabank has a "Sector Perform" rating and a $7.00 price objective on the stock. The consensus estimate for Rapid7's current full-year earnings is $0.55 per share.

RPD has been the subject of a number of other reports. Mizuho cut their target price on Rapid7 from $12.00 to $8.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Stephens cut their target price on Rapid7 from $19.00 to $12.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 11th. Citigroup cut their target price on Rapid7 from $15.00 to $11.50 and set a "neutral" rating for the company in a research note on Thursday, February 12th. Zacks Research downgraded Rapid7 from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 27th. Finally, Royal Bank Of Canada cut their target price on Rapid7 from $16.00 to $12.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 11th. Two analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $9.39.

Rapid7 Stock Performance

Shares of RPD stock opened at $6.57 on Thursday. The company has a market cap of $438.68 million, a price-to-earnings ratio of 18.77 and a beta of 0.89. The stock has a 50 day simple moving average of $6.03 and a 200-day simple moving average of $11.24. Rapid7 has a 12-month low of $4.97 and a 12-month high of $27.10. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 5.77.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.06. The business had revenue of $209.69 million during the quarter, compared to the consensus estimate of $207.94 million. Rapid7 had a return on equity of 37.85% and a net margin of 2.61%.The company's revenue for the quarter was down .3% on a year-over-year basis. During the same period in the prior year, the business posted $0.49 EPS. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS.

Institutional Investors Weigh In On Rapid7

Institutional investors and hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC acquired a new stake in shares of Rapid7 in the 4th quarter worth approximately $40,000. CI Investments Inc. grew its holdings in shares of Rapid7 by 48.4% in the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company's stock worth $43,000 after acquiring an additional 744 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in shares of Rapid7 in the 3rd quarter worth approximately $44,000. Headlands Technologies LLC acquired a new stake in shares of Rapid7 in the 2nd quarter worth approximately $44,000. Finally, Parallel Advisors LLC grew its holdings in shares of Rapid7 by 81.6% in the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock worth $46,000 after acquiring an additional 1,364 shares during the period. Institutional investors and hedge funds own 95.66% of the company's stock.

About Rapid7

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7's offering is its Insight platform, a unified, cloud-native security operations and analytics suite.

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