Rapid7 (RPD) PT Raised to $30 at Needham & Company

Needham & Company raised its price target on Rapid7 (NASDAQ: RPD) to $30.00 (from $23.00) while maintaining a Buy rating.

Analyst Alex Henderson commented, "RPD delivered a convincing CY4Q and strong guide, outpacing expectations. The transition to a broader platform beyond core VM drove 44% yr-yr Billings growth with larger deals and longer contracts. This was 27% ahead of forecast. Robust uptake of InsightVM/IDR contributed to a healthy and growing pipeline. Moving forward, RPD's guide calls for 21-24% growth in CY1Q and 19-22% in CY18 under ASC605, with more leverage and profitability. We are incorporating the new ASC606 convention, impacting reported Perpetual Revenues but resulting in greater leverage from deferred commissions. We want to stress this does not change the trajectory of the business despite the impact on reported numbers. RPD is growing 20%+ with 30%+ ARR growth and still expects profitability in CY19, much earlier than modeled. Increasing estimates and TP."

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