S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Thursday, Cantor Fitzgerald reaffirmed its positive stance on Rubrik Inc (NYSE:RBRK), maintaining an Overweight rating and a price target of $95.00. The stock, currently trading at $84.61, has garnered strong analyst support, with 14 analysts recently revising their earnings estimates upward according to InvestingPro data. The firm’s analysts highlighted that Rubrik, primarily a software vendor, has minimal direct exposure to tariffs. The company’s customers often procure hardware for data storage from partners such as Supermicro (SMCI, NC), but since Rubrik only sells software, it is insulated from the direct impacts of hardware tariffs. This software-focused strategy has proven successful, with the company achieving impressive revenue growth of 41.19% and maintaining a robust gross profit margin of 70.02%.
Rubrik’s hardware partners source components from various global locations, including Taiwan, the Philippines, and China, and manufacture them in the United States, Taiwan, and the Netherlands. Analysts noted that while tariffs on hardware could affect customer spending, they would not directly affect Rubrik’s business. The company’s role in cloud and Software (ETR:SOWGn) as a Service (SaaS) data backups, where storage is managed by cloud providers, further reduces its vulnerability to hardware-related tariff issues.
The analysts also pointed out that in periods of economic uncertainty, companies prioritize operational continuity, which is expected to protect the demand for cyber resilience solutions like those offered by Rubrik. This demand is seen as a buffer against broader macroeconomic challenges.
Cantor Fitzgerald’s position reflects confidence in Rubrik’s market resilience and its ability to navigate potential economic headwinds without significant direct impact from tariffs on hardware. The firm’s analysis suggests that Rubrik’s business model, focused on software and cloud services, positions it favorably in the current economic landscape. This confidence appears well-founded, as InvestingPro data shows the stock has delivered remarkable returns, gaining 146.25% over the past year and currently trading near its 52-week high of $84.65.
In other recent news, Rubrik Inc. has been the focus of several significant developments. Roth/MKM initiated coverage on Rubrik with a Buy rating and set a price target of $97 per share, highlighting the company’s potential to outperform revenue expectations for fiscal year 2026. Guggenheim also raised its price target for Rubrik to $80, maintaining a Buy rating, and praised the company’s innovative approach to tackling cyber threats. In executive news, Rubrik appointed Kavitha Mariappan as Chief Transformation Officer, a role aimed at enhancing executive engagement and accelerating cyber resilience. The company also announced advancements in its partnership with Google (NASDAQ:GOOGL) Cloud, including a new isolated recovery environment to enhance data protection and resilience for Google Cloud customers. Additionally, Rubrik introduced the Rubrik Annapurna initiative to improve AI data security on Google Cloud, emphasizing secure data management and adherence to Zero Trust principles. These initiatives are part of Rubrik’s ongoing efforts to strengthen its position in the data protection and cyber resilience market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.