Mizuho Trims Rapid7 (RPD) PT to $16, Maintains Neutral Rating

Rapid7 Inc. (NASDAQ:RPD) is one of the best small cap tech stocks to invest in now. On January 21, Mizuho analyst Gregg Moskowitz reduced the price target for Rapid7 from $20 to $16 while maintaining a Neutral rating. This sentiment was announced as part of the firm’s broader large-cap software Q4 2025 earnings preview.

Although channel checks revealed solid public cloud performance and very strong AI adoption, the firm noted more moderate budget activity than typical and expressed concern that AI-related disruption is significantly depressing software company multiples. Consequently, Mizuho cited this widespread valuation compression as the primary driver for the lowered price target.

A day before that, Truist lowered its price target for Rapid7 to $14 from $18 with a Hold rating as part of a Q4 2025 cybersecurity sector preview. Although the firm expects strong Q4 results and continued momentum in Security and AI initiatives, it anticipates that management teams will issue conservative guidance for 2026 to facilitate a future beat-and-raise cadence. Despite steady demand from IT budget holders, Truist noted that software equities face significant headwinds.

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Rapid7 Inc. (NASDAQ:RPD) provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names.

While we acknowledge the potential of RPD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RPD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.