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On Friday, Piper Sandler analysts increased the price target for Rubrik Inc (NYSE: RBRK) stock to $115 from the previous $72, while maintaining an Overweight rating. Currently trading at $98.57 with a market capitalization of $19 billion, the stock has caught analysts’ attention. The analysts cited Rubrik’s robust growth dynamics, particularly in areas like cyber-resilience and ransomware, as key factors in their decision.
The analysts noted that few publicly-traded companies are experiencing growth rates exceeding 40% at Rubrik’s scale. Indeed, InvestingPro data shows Rubrik achieved impressive revenue growth of 43.89% in the last twelve months, with a robust gross profit margin of 76.45%. They attributed this growth to the company’s aggressive market strategies and the evolving demand for "Gen-Z" architectures, which are contributing to Rubrik’s market share gains.
Management at Rubrik expressed optimism about the recent launch of their Identity Recovery solution. While this product is expected to complement existing identity offerings, it may take time to fully integrate into the market as a ’defense-in-depth’ strategy.
Despite an 84% increase in Rubrik’s stock over the past six months, Piper Sandler analysts continue to view it as a top pick. According to InvestingPro data, the stock has delivered an exceptional 196% return over the past year and is currently trading near its 52-week high of $101.80. While technical indicators suggest the stock may be overbought, analysts believe that the company’s valuation remains attractive when adjusted for growth, especially when compared to other hyper-growth assets.
The analysts emphasized the importance of various market dynamics and regulation changes that are driving demand for Rubrik’s solutions, reinforcing their positive outlook on the company’s future performance. For deeper insights into Rubrik’s valuation and growth metrics, including 10+ additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Rubrik Inc. has reported notable developments that are drawing attention from investors. The company exceeded earnings expectations in its first quarter of 2025, reporting an earnings per share (EPS) of -$0.15, surpassing the forecasted -$0.32. Rubrik’s revenue also outperformed expectations, reaching $278.48 million against a forecast of $260.4 million. The company’s subscription annual recurring revenue (ARR) experienced a 38% year-over-year growth, reaching $1.2 billion. Analysts from KeyBanc, Guggenheim, Mizuho (NYSE:MFG), and Rosenblatt have all raised their price targets for Rubrik, with KeyBanc setting a target of $113, Guggenheim at $108, Mizuho at $97, and Rosenblatt at $110, reflecting confidence in Rubrik’s growth and market positioning.
Rubrik’s growth is further underscored by a 49% increase in revenue and a 54% surge in subscription revenue, as noted by Guggenheim and Rosenblatt. The company has also reported a positive free cash flow of $33 million, marking its third consecutive quarter of positive cash flow, as highlighted by Guggenheim. Mizuho analysts emphasized Rubrik’s strong focus on data protection and ransomware defenses, although they maintained a Neutral rating due to the stock’s significant appreciation since its IPO. Rubrik’s strategic initiatives and product innovations, particularly in cybersecurity, have been well-received in the market, with the company planning to continue its investment in research and development to drive future growth.
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