15 Software Stocks With the Highest Upside Potential

8. Rubrik, Inc. (NYSE:RBRK)

Potential Upside: 58.68%

Number of Hedge Fund Holders: 52

Fatima Boolani, an analyst at Citi, reaffirmed her Buy rating along with the price target of $115 for the stock on January 12. Additionally, she has added an “upside 90-day short-term view” on the company. According to the analyst, the firm expects Rubrik to deliver an annual recurring revenue (ARR) beat and sustain a mid-20% range sales growth outlook. The financial services firm highlighted that, at current levels, the stock offers an attractive risk/reward profile. This reflects Citi’s positive stance on both short-term performance and long-term growth potential.

Eric Heath at KeyBanc also maintained his Buy rating on the stock on January 12, while cutting the firm’s price target from $113 to $95. The revised price target implies a further 37% upside from current levels, which is consistent with the lowest Wall Street analysts’ upside, as per 26 analysts covering the stock.

The analyst said that the target price revision reflects modestly lower valuation multiples among peers, growing competitive pressures in the market, and increased caution around the security budgets. However, the firm still maintains a positive stance on the stock relative to the broader sector.

Rubrik, Inc. (NYSE: RBRK) is a data security solutions provider serving individuals and businesses globally. It offers unstructured data protection, SaaS data protection, enterprise data protection, cloud data protection, identity provider services protection, and other solutions. The company was founded in 2013 and is headquartered in Palo Alto, California.