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On Wednesday, Guggenheim maintained a positive outlook on Rubrik Inc (NYSE:RBRK), raising its price target to $105.00 from the previous $80.00, while reiterating a Buy rating on the company’s shares. The stock, currently trading at $94.85, has shown remarkable momentum with a 192% return over the past year according to InvestingPro data. The research firm’s confidence is bolstered by ongoing positive checks and Rubrik’s consistent deal wins, attributed to its effective go-to-market strategy and unique offerings in security.
Rubrik is anticipated to meet or exceed consensus estimates for its F1Q26 Subscription Annual Recurring Revenue (Subs ARR) and revenue. While the company posted impressive revenue growth of 41.19% in the last twelve months, InvestingPro analysis indicates the company is not yet profitable, with a negative EBITDA of $1.11 billion. Guggenheim’s analysis suggests that while the margin by which Rubrik might surpass expectations could be smaller than in the past, the company is still positioned to guide above Wall Street’s expectations for F2Q26 and modestly raise its full-year FY26 guidance for both Subs ARR and revenue.
The firm’s checks indicate that despite macroeconomic uncertainties, the data protection sector is experiencing secular tailwinds. Rubrik’s success is increasingly tied to its strong partner relationships and growing brand awareness. The integration of security into its backup and recovery solutions is gaining recognition, especially as the demand for cyber recovery solutions rises.
Guggenheim’s recent discussions with partners reveal that some have already surpassed their quarterly targets for Rubrik and one has increased its full-year expectations, signaling robust performance in their Rubrik-related business. This positive feedback supports the firm’s view that Rubrik’s stock, despite trading at a premium valuation of 14.4 times next twelve months’ recurring revenue, is justified by its trajectory as a leader in data protection and its superior New ARR growth.
In summary, Guggenheim’s revised price target reflects an optimistic stance on Rubrik’s long-term growth potential and its ability to continue leading in the data protection market. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ stocks, Rubrik appears overvalued at current levels, with the stock trading near its 52-week high of $95.39. The firm’s analysis projects a promising future for Rubrik, underpinned by solid performance indicators and a competitive edge in its product offerings. InvestingPro subscribers have access to 12 additional ProTips and detailed financial metrics that provide deeper insights into Rubrik’s valuation and growth prospects.
In other recent news, Rubrik Inc. has been the focus of significant developments. Cantor Fitzgerald maintained an Overweight rating on Rubrik, with a target price of $95, highlighting the company’s resilience against hardware tariffs due to its focus on software and cloud services. Roth/MKM initiated coverage with a Buy rating and a $97 price target, citing Rubrik’s growth potential in the data protection market and its ability to surpass revenue expectations. Additionally, Rubrik announced the appointment of Kavitha Mariappan as Chief Transformation Officer, aiming to enhance executive engagement and accelerate cyber resilience efforts.
The company is also collaborating with Mandiant to enhance cyber defenses for Google (NASDAQ:GOOGL) Cloud users, focusing on secure data backups and recovery. This partnership aims to provide robust capabilities to protect against cyber threats and ensure business continuity. Further, Rubrik introduced Rubrik Annapurna to strengthen AI data security on Google Cloud, integrating with Google Cloud’s Agentspace to secure AI data management. These initiatives are part of Rubrik’s broader mission to secure data through its Zero Trust Data Security platform.
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