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On Friday, BMO Capital Markets adjusted their financial outlook on Rubrik Inc (NYSE:RBRK), increasing the price target to $77 from the previous $72 while maintaining an Outperform rating on the company’s shares. Currently trading at $69.15 with a market capitalization of $10.2 billion, Rubrik has shown impressive momentum with an 81% price gain over the past six months. According to InvestingPro analysis, the stock currently trades above its Fair Value, suggesting investors should carefully consider entry points. The revision follows Rubrik’s recent announcement of strong performance indicators, which included solid results across its operations, underpinned by widespread demand and a growing range of products.
Keith Bachman, an analyst at BMO Capital, noted Rubrik’s net new subscription Annual Recurring Revenue (ARR) growth had accelerated since the last quarter. Additionally, the company’s Free Cash Flow (FCF) results were highlighted as particularly robust. Bachman’s commentary pointed out that Rubrik’s management has provided a forecast for FY26 subscription ARR growth that surpasses consensus estimates by approximately 4 percentage points.
This forward-looking guidance from Rubrik’s management was described as one of the most positive among the company’s software peers. Bachman also suggested that there might be further potential for upward revisions to BMO Capital’s FY26 net new subscription ARR and FCF projections for Rubrik.
The analyst’s positive stance is further reinforced by the belief in the company’s potential to exceed the financial estimates set by BMO Capital. The raised price target to $77 reflects this optimism and the expectation that Rubrik will continue to perform strongly in the competitive software market.
In other recent news, Rubrik Inc reported impressive fourth-quarter results for fiscal year 2025, exceeding the upper limits of their guidance in several key metrics, including annual recurring revenue (ARR), total revenue, ARR contribution margin, and free cash flow (FCF). Truist Securities maintained a Buy rating with a $90 price target, citing Rubrik’s strong performance and strategic positioning in data security. Piper Sandler also raised its price target to $87, highlighting Rubrik’s significant growth in Cloud ARR, which increased by 67%, and their transition to cloud-based services. Meanwhile, KeyBanc Capital Markets adjusted its price target to $82, maintaining an Overweight rating, following Rubrik’s robust ARR growth and improved operating margin. Rosenblatt Securities increased their price target to $82, acknowledging Rubrik’s 47% year-over-year revenue growth and strong demand for its Cyber Resilience platform. Mizuho (NYSE:MFG) Securities, while reducing the price target to $75, retained an Outperform rating, focusing on Rubrik’s substantial 53% growth in net new subscription ARR and its leading position in ransomware defense. These recent developments reflect a general consensus among analysts of Rubrik’s continued growth potential and strategic advancements in the data security market.
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