U.S. stocks edge higher; solid earnings season continues
Investing.com - JPMorgan has reiterated its Neutral rating and $23.00 price target on Rapid7 (NASDAQ:RPD), citing persistent execution issues at the cybersecurity firm. According to InvestingPro data, the company’s stock is currently trading near its 52-week low of $20.22, with a market capitalization of $1.32 billion.
The investment bank expects another quarter of NNARR (Net New Annual Recurring Revenue) deceleration for Rapid7, in line with the company’s guidance, which implies improvement in the second half of the year.
JPMorgan believes sequential ARR (Annual Recurring Revenue) weakness will continue to pressure the stock, noting a lack of evidence to support a more optimistic outlook following several years of sales execution challenges.
While Rapid7 closed some large deals in the second quarter, including a seven-figure, multi-million dollar deal, the company reportedly experienced incremental pressure in the mid-market segment with limited visibility on deal closing timelines.
Despite Rapid7 trading at approximately 1.2 times CY26 sales, which some might view as attractive, JPMorgan suggests investors will remain cautious given the company’s history of mixed execution and guidance that "may not be conservative enough." InvestingPro analysis reveals 14 additional investment tips and comprehensive metrics that could help investors make more informed decisions about Rapid7’s current market position.
In other recent news, Rapid7, Inc. has made several significant announcements. The company launched Incident Command, a new Security Information and Event Management solution that integrates threat detection with attack surface management and threat intelligence. Additionally, Rapid7’s InsightGovCloud Platform achieved FedRAMP Authorization, allowing it to offer cloud security services to U.S. federal agencies. In another development, Rapid7 introduced Active Patching, an automated patching solution aimed at helping IT teams remediate vulnerabilities. The company also expanded its AI security capabilities by making its exposure management tools available on the AWS Marketplace. Meanwhile, Canaccord Genuity adjusted its price target for Rapid7 to $39, maintaining a Buy rating. The firm noted improvements in Rapid7’s sales structure and platform capabilities as positive factors. These developments come amid speculation about potential acquisitions in the vulnerability management sector.
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