Rosenblatt lifts Rubrik stock target to $82 on strong Q4 results

Published 14/03/2025, 12:50
Rosenblatt lifts Rubrik stock target to $82 on strong Q4 results

On Friday, Rosenblatt Securities increased its price target for Rubrik Inc (NYSE:RBRK) shares to $82.00, up from the previous $77.00, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for the stock range from $47 to $90, with Rosenblatt’s new target positioning it among the more bullish outlooks for this $10.24 billion market cap company. This adjustment follows Rubrik’s fourth-quarter earnings report, which ended on January 31st, showcasing revenue figures approximately 11% higher than Rosenblatt’s projections, with a year-over-year increase of 47%. Subscription revenue notably rose by 53% year-over-year, benefiting from one-time deals and maintenance conversions. The company maintains a healthy gross profit margin of 69.22%, though InvestingPro analysis indicates it’s currently trading at a high revenue multiple.

Rubrik’s total Annual Recurring Revenue (ARR) reached $1,093 million, marking a 39% growth from the previous year and surpassing Rosenblatt’s expectations by 3%. Despite economic uncertainties, the company has observed strong demand for its Cyber Resilience platform and intends to further enhance its product offerings throughout 2025. While InvestingPro data shows strong revenue growth of 33.22% over the last twelve months, subscribers can access 7 additional ProTips and comprehensive financial analysis in the Pro Research Report.

The company has also provided an optimistic revenue forecast for FY26, estimating a midpoint value of $1,153 million, which signifies a 30% year-over-year growth and is approximately 5% higher than Rosenblatt’s earlier estimate of $1,103 million. This anticipated increase is expected to generate Free Cash Flow (FCF) between $45 million and $65 million.

In light of these positive developments, Rosenblatt has revised its forecasts for FY26 and FY27 upward and has based the new price target on the FY27 estimates. The robust quarterly performance and promising outlook for Rubrik have prompted this price target increase by the securities firm.

In other recent news, Rubrik Inc. reported its fourth-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of -$0.18, significantly better than the forecasted -$0.38, and reported revenue of $258 million, marking a 47% increase year-over-year. The Subscription Annual Recurring Revenue (ARR) grew by 39% to $1.093 billion, highlighting strong demand for Rubrik’s cyber resilience solutions. Analysts from Mizuho (NYSE:MFG), Cantor Fitzgerald, and Guggenheim have all maintained positive ratings on Rubrik, with price targets set at $75, $85, and $76, respectively, reflecting confidence in the company’s growth trajectory and market position.

Mizuho Securities noted Rubrik’s robust performance and the company’s optimistic guidance for fiscal year 2026, despite adjusting their price target due to market conditions. Cantor Fitzgerald highlighted Rubrik’s outperformance in revenue, subscription ARR, operating income, and free cash flow, reinforcing their positive outlook. Guggenheim also emphasized Rubrik’s strategic positioning in the cybersecurity-focused backup and recovery market, attributing its success to a strong emphasis on cyber resilience. These developments suggest a continued positive momentum for Rubrik in the competitive cloud data management sector.

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