On Thursday, Baird maintained its Outperform rating on Rubrik Inc (NYSE:RBRK) and raised the company’s price target to $55.00, up from the previous target of $48.00. This adjustment reflects a positive outlook on the company's performance in the third quarter, as well as its potential for the second half of the fiscal year and into 2025.
The analyst noted that the conditions leading up to the third quarter were favorable, citing "easier comps and stronger execution per checks." Baird's estimates are positioned above the consensus for key financial metrics. Rubrik's stock has seen a significant rally, with an impressive 67.58% gain over the past six months, outpacing the 22% gain of the IGV index during the same period.
This performance follows the end of a lockup period, which Baird had previously identified as a buying opportunity. According to InvestingPro analysis, 10 analysts have revised their earnings upwards for the upcoming period, with analyst targets ranging from $38 to $58.
Improved sentiment towards the company is also highlighted, with expectations set high after positive industry checks and readthroughs. The analyst specifically mentioned competitors like CVLT, Cohesity, and Veeam's recent $15 billion valuation as indicators of a robust industry environment. Investors are reportedly looking forward to Rubrik outperforming in net new annual recurring revenue (NNARR) and margin management.
Despite the recent appreciation in Rubrik's share price, Baird sees further upside potential for the second half of the fiscal year and into the calendar year 2025. The firm's stance is underpinned by Rubrik's solid fundamentals, including 24.7% revenue growth in the last twelve months and a robust 69.3% gross profit margin.
The company's high visibility, go-to-market momentum, and its position as a leader in cyber resilience continue to drive optimism. Get deeper insights into Rubrik's financial health and growth prospects with InvestingPro, which offers exclusive ProTips and comprehensive analysis through the Pro Research Report.
In other recent news, data security firm Rubrik Inc. has been making significant strides with strong earnings and revenue results. The company's annual recurring revenue (ARR) exceeded expectations, leading to upward revisions of the fiscal year 2025 ARR and margin guidance. Rubrik also expanded its market presence by acquiring a company specializing in cyber resilience and AI-driven recovery.
The company's cyber recovery solutions now support Nutanix (NASDAQ:NTNX) AHV, a widely-used virtualization platform, enhancing cyber resilience and accelerating forensic investigations after cyberattacks.
Analysts have been closely following these developments. Truist Securities raised its price target on Rubrik from $43.00 to $50.00, maintaining a Buy rating. Citi reaffirmed a Buy rating on Rubrik, expressing confidence in the company's revenue and ARR growth prospects.
Oppenheimer initiated coverage on Rubrik with a Perform rating, citing the company's potential but expressing concerns about its current operating loss due to heavy investment. Piper Sandler maintained an Overweight rating despite recent market underperformance linked to a Department of Justice subpoena and troubling news involving a former employee.
These are the recent developments for Rubrik Inc., reflecting the company's robust financial performance and strategic initiatives in the data security field. The company has launched a new cyber resilience service for Microsoft (NASDAQ:MSFT) Azure Blob Storage, aiming to enhance visibility and security for cloud data.
This development is part of Rubrik's broader mission to secure the world's data through its Zero Trust Data Security™ platform, designed to help organizations maintain data integrity, monitor threats, and recover from cyberattacks.
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