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On Thursday, Rubrik Inc (NYSE: RBRK) received a new Buy rating from Roth/MKM, with analysts setting a price target of $97.00 per share. The stock, currently trading at $84.61, has shown remarkable momentum with a 146% return over the past year. According to InvestingPro, 14 analysts have recently revised their earnings expectations upward for the upcoming period. The firm started coverage on the cyber resiliency company, highlighting its potential for growth in the data protection market.
Rubrik, known for aiding customers in safeguarding their data, is projected to have a substantial market opportunity, with an estimated addressable market of approximately $53 billion by 2027. The company has demonstrated strong execution with revenue growth of 41.19% and an impressive gross margin of 70.02%. Roth/MKM’s analysis suggests the company is positioned to outperform the conservative revenue guidance for fiscal year 2026, as well as surpass current average recurring revenue (ARR) expectations on the Street.
The analyst at Roth/MKM believes that Rubrik’s stock offers an attractive investment opportunity, given that it is trading at roughly 8 times its expected fiscal year 2027 to calendar year 2026 enterprise value to sales (EV/Sales). This valuation is considered low, especially when compared to the peer average EV/Sales growth (EV/S/g) ratio of about 0.6 times, with Rubrik’s ratio being approximately 0.30. However, InvestingPro analysis indicates the stock is currently trading above its Fair Value, with additional insights available in the comprehensive Pro Research Report.
The positive outlook is based on the premise that Rubrik will likely be able to "beat and raise," meaning it could surpass its financial targets and subsequently raise future forecasts. This sentiment is grounded in the firm’s analysis and expectations of the company’s performance.
Rubrik’s new price target of $97.00 reflects Roth/MKM’s confidence in the company’s growth trajectory and its ability to capitalize on the expanding market for data protection solutions. The initiation of coverage with a Buy rating suggests that the analysts see significant upside potential for the company’s shares from their current trading levels.
In other recent news, Rubrik has made several notable announcements and strategic moves. The company recently appointed Kavitha Mariappan as Chief Transformation Officer, a new role aimed at enhancing executive engagement and accelerating cyber resilience. This appointment underscores Rubrik’s commitment to advancing its leadership in data security. Additionally, Rubrik has partnered with Google (NASDAQ:GOOGL) Cloud to enhance cyber defenses for their customers, introducing a cloud-based isolated recovery environment in collaboration with Mandiant. This initiative is designed to secure business-critical data backups and ensure swift recovery from cyber threats.
Furthermore, Rubrik has launched Rubrik Annapurna, an initiative focused on improving AI data security and governance on Google Cloud. This integration aims to provide secure, API-driven access to data for AI applications while adhering to Zero Trust security principles. Analyst firms have also shown confidence in Rubrik’s growth potential. Guggenheim recently raised its price target for Rubrik to $80, maintaining a Buy rating, citing the company’s innovative approach to cyber threats and impressive financial performance.
Similarly, BMO Capital increased its price target to $77, keeping an Outperform rating, highlighting Rubrik’s strong Annual Recurring Revenue growth and robust Free Cash Flow results. These developments reflect Rubrik’s strategic focus on innovation and its capacity to meet the evolving cybersecurity needs of its clients.
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