Rapid7 (RPD) PT Lowered to $6.50 at Barclays

Barclays analyst Saket Kalia lowered the price target on Rapid7 (NASDAQ: RPD) to $6.50 (from $8.00) while maintaining a Underweight rating.

The analyst commented, "Three key points on RPD's 1Q: (1) ARR churn was less than feared at ($8M) and bottom line metrics came in better than expectations, but the headline continues to be ARR churn; (2) more visibility in the moving parts of the business was good to see, but 2Q ARR is coming in lower than expectations, and we flow this through our model, which takes our in-year and out-year estimates down; and (3) the beat and bottom line raise is a good start, but with ~45% of the business declining in the mid-teens and the AI debate remaining active in exposure management, we think this will remain a work in progress. We lower our PT to $6.50 (from $8) based on ~5x our FY27 FCF estimate of $134M."

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