Berenberg Starts Rapid7 (RPD) at Hold

Berenberg analyst Rahul Chopra initiates coverage on Rapid7 (NASDAQ: RPD) with a Hold rating and a price target of $16.00.

The analyst comments: "Rapid7’s story has shifted dramatically over the past two years. Once positioned as a mid-market consolidator with double-digit ARR growth and an integrated security operations (SecOps) platform, the company today finds itself caught in a whirlpool of competition from faster-growing disruptors, longer sales cycles for its platform deals, and operational challenges. While fast-growing cybersecurity peers are, on average, delivering 20%-plus revenue growth and beat-and-raise on guidance, ARR downgrades have been a consistent feature over the past 12 months at Rapid7. Management is guiding to 2025E revenue growth of 1-2% and a nearly 400bp operating margin decline. Further, with flat ARR growth for 2025E, we struggle to see revenue acceleration in 2026E as well. We initiate with a Hold rating and a price target of $16.0."

For an analyst ratings summary and ratings history on Rapid7 click here. For more ratings news on Rapid7 click here.

Shares of Rapid7 closed at $13.46 yesterday.

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