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Investing.com - Rubrik Inc (NYSE:RBRK), currently valued at $19 billion, received a reiterated Neutral rating and $97.00 price target from Mizuho on Wednesday, despite posting strong quarterly results. According to InvestingPro data, analyst targets range from $97 to $125.
The data security company reported subscription annual recurring revenue (ARR) of $1.25 billion in its fiscal second quarter, representing 36% year-over-year growth and exceeding Wall Street’s expectation of 33%.
Net new subscription ARR reached $71 million, up 12% year-over-year, though this growth rate moderated from the 23% year-over-year improvement seen in the previous quarter. Cloud ARR showed particularly robust performance, growing 57% year-over-year.
Following these results, Rubrik’s management raised its full-year guidance for the second consecutive quarter, signaling continued confidence in its business trajectory.
Mizuho acknowledged Rubrik’s competitive advantages in data protection and ransomware defense but maintained its Neutral stance, noting the stock has appreciated more than 200% since its mid-2024 IPO and 51% year-to-date, suggesting shares are currently fairly valued. This aligns with InvestingPro’s Fair Value assessment, which indicates the stock is currently trading above its intrinsic value.
In other recent news, Rubrik Inc. reported its fiscal second-quarter earnings, significantly surpassing market expectations. The company posted an earnings per share (EPS) of -$0.03, while analysts had projected -$0.34, indicating a notable improvement. Rubrik’s revenue for the quarter reached $310 million, exceeding forecasts and demonstrating a 51% increase compared to the previous year. The company’s performance also included a 10% revenue beat over consensus estimates and a 2% outperformance in subscription annual recurring revenue (ARR). In light of these results, Goldman Sachs raised its price target for Rubrik from $110 to $120, maintaining a Buy rating. The company’s operating margin and free cash flow margin both exceeded expectations by 1900 basis points. These recent developments highlight Rubrik’s strong financial performance and positive outlook from analysts.
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