Stifel lowers Rapid7 stock price target to $22 on slower growth

Published 08/08/2025, 15:50
Stifel lowers Rapid7 stock price target to $22 on slower growth

Investing.com - Stifel maintained its Hold rating on Rapid7 (NASDAQ:RPD) but lowered its price target to $22.00 from $29.00 following the company’s second-quarter financial results. The stock, currently trading at $19.02, has declined 48% over the past six months and is hovering near its 52-week low of $19.21. According to InvestingPro analysis, the company appears undervalued at current levels.

The cybersecurity firm delivered second-quarter annual recurring revenue (ARR) in line with expectations, while other key financial metrics exceeded both guidance and analyst estimates. The company maintains a healthy gross margin of 70.62% and has achieved revenue growth of 6.19% over the last twelve months. InvestingPro subscribers can access 13 additional key insights and a comprehensive analysis of Rapid7’s financial health.

Rapid7’s Threat Detection and Response segment continues to show strength with mid-teens growth, though this was offset by ongoing weakness in the Risk and Exposure Management division.

The company announced leadership changes, including the retirement of its Chief Financial Officer and the hiring of its first Chief Commercial Officer.

Stifel’s price target reduction follows Rapid7’s third-quarter ARR guidance, which projects essentially flat growth below consensus estimates, with management lowering the high-end of its ARR guidance by $15 million while keeping other fiscal year 2025 guidance unchanged.

In other recent news, Rapid7 reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.58, surpassing the forecasted $0.45. The company also outperformed revenue predictions, posting $214 million compared to the expected $212.01 million. Despite these favorable results, Mizuho (NYSE:MFG) adjusted its price target for Rapid7 to $25.00 from $27.00, maintaining a Neutral rating. This adjustment follows Rapid7’s latest financial results, which showed total Annual Recurring Revenue (ARR) of $841 million, reflecting a 3% year-over-year growth. The growth met analysts’ modest expectations, contributing to the cautious stance from Mizuho. These developments highlight the market’s mixed reactions to Rapid7’s financial performance and strategic outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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