15 Best Small Cap Stocks to Buy According to Wall Street

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5. Rapid7, Inc. (NASDAQ:RPD)

Market capitalization: $470M

Potential upside: 103.25%

Number of Hedge Fund Holders: 34

On February 11, 2026, Scotiabank analyst Patrick Colville lowered his price target on Rapid7, Inc. (NASDAQ:RPD) to $9 from $18 and maintained a Sector Perform rating, saying the firm plans to stay on the sidelines until the company can demonstrate a return to sustainable revenue and earnings growth.

Other firms also trimmed expectations following earnings. On February 11, 2026, Truist reduced its price target to $8 from $14 and kept a Hold rating, describing the fourth-quarter results as mixed and largely in line with estimates, while noting organizational changes and strategic shifts intended to re-accelerate growth. The same day, UBS downgraded Rapid7 to Neutral from Buy and cut its price target to $9 from $25, citing what it called a “disappointing” fourth-quarter report and “cautious” 2026 guidance, including a projected 2% year-over-year revenue decline. UBS said it is concerned about deceleration in the Detection and Response business, historically a stronger segment.

Rapid7 reported fourth-quarter revenue of $217 million on February 11, 2026, slightly above the $215.17 million consensus estimate. CEO Corey Thomas said the company exited 2025 ahead of fourth-quarter ARR, revenue, and profitability guidance, pointing to its AI security operations approach and plans to focus on innovation and execution in 2026. The company guided fiscal 2026 revenue to $835 million to $843 million, below the $869.95 million consensus estimate.

Rapid7, Inc. (NASDAQ:RPD) provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brands, offering solutions across on-premises and cloud environments.

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