UBS Boosts Rapid7 (RPD) Price Target Despite Modest Q2 Revenue Growth

Rapid7, Inc. (NASDAQ:RPD) is one of the most undervalued cybersecurity stocks to buy now. On August 8, UBS maintained its Buy rating on Rapid7, Inc. (NASDAQ:RPD), and increased its price target from $30 to $34. UBS said the company’s Q2 FY 2025 earnings were “ok”. However, the latest price target represents a whopping 61% upside from the current market price of $21.08.

UBS Boosts Rapid7 (RPD) Price Target Despite Modest Q2 Revenue Growth

A computer engineer analyzing a server network for cyber security threats.

Rapid7, Inc. (NASDAQ:RPD) reported revenue of $214.2 million, barely beating analyst expectations of $212 million, but just a modest 3% year-on-year growth. The company’s EPS stood at $0.58 per share, which easily beat estimates of $0.44. The company confirmed its full-year revenue guidance of $858 million at the midpoint, a modest increase from the previous year’s revenue of $844 million. It also raised its full-year EPS guidance to $1.96, marking a 6.5% increase.

Rapid7, Inc. (NASDAQ:RPD)’s CEO Corey Thomas said in the company’s earnings call that its ARR (Annual Recurring Revenue) guidance was narrowed due to a shift toward larger, albeit less predictable deals amid ongoing volatility. Thomas said that the company is working to simplify adoption and is focusing instead on strategic, high-value customers over smaller, transactional ones.

While we acknowledge the potential of RPD as an investment, 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 a 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.