Guggenheim Starts Rubrik Inc (RBRK) at Buy

Guggenheim analyst John DiFucci initiates coverage on Rubrik Inc (NYSE: RBRK) with a Buy rating and a price target of $48.00.

The analyst comments: "We believe that in Rubrik’s quest to solve the modern Backup & Recovery problem, it provided the foundation required to solve a pressing problem plaguing enterprises – ransomware. This pulled Rubrik into cybersecurity, which it embraced with the goal of helping customers. This has positioned Rubrik as a change agent for the large, but slow-growing Backup & Recovery market, expanding its scope and relevance, which we believe should support the company's ARR growth in excess of 20% for the foreseeable future. We expect this to eventually turn into ample free cash flow (FCF), as we see nothing in this model to preclude it from this achievement, and view its Sales & Marketing expenditures as justified given the outsized New ARR captured. Finally, we believe the current management team to be up to the task of continued focus on current prospects, while continually searching for adjacent opportunities to exploit. Rubrik is much more than Backup & Recovery – it is a data security company – but most importantly, it has become a partner to its customers in their pursuit of business resilience. We view RBRK shares as attractively valued at $36.57, or 9.6x EV/NTM recurring revenue."

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

Shares of Rubrik Inc closed at $36.57 yesterday.

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