Rapid7 (RPD) PT Lowered to $9 at Scotiabank

Scotiabank analyst Patrick Colville lowered the price target on Rapid7 (NASDAQ: RPD) to $9.00 (from $18.00) while maintaining a Sector Perform rating.

The analyst commented: "We maintain our Sector Perform rating on Rapid7 after a 4Q in which ARR and operating margins were ok, but the outlook for 2026 isn’t what bulls would be hoping for. Management describes 2026 as a transition year for Rapid7 given the many operational and strategic changes, revenue and operating income are set to decline which will weigh heavy on shares. Rapid7’s pivot to MDR makes sense, given our fieldwork is that vulnerability management isn’t a current budget priority - EG we just spoke to a CISO that spends $700K on Rapid7 for a large number of assets but plans to reduce that spend by 75% in 2026 at renewal. On the positive side, we believe cybersecurity software such as Rapid7 should be well insulated from the risk of "vibe coded" copycats, as executives understand that this solution is mission-critical, with no room for error. But even so, our checks leave us unconvinced that Rapid7 is best positioned to be the platform of choice for protecting enterprises against the dangers of AI adoption. Ultimately, until Rapid7 can prove an ability to return to sustainable top and bottom line growth, which we would love to see, we remain on the sidelines."

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