On Thursday, Piper Sandler adjusted its outlook on shares of Rubrik Inc (NYSE: RBRK), increasing the price target to $83 from the previous $72 while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock has demonstrated remarkable momentum with a 122% gain over the past six months, while maintaining a strong gross profit margin of 69.2%.
The revision follows the release of Rubrik's 10-Q financial report, prompting the firm to update its projections based on the company's mix of ratable versus upfront revenue within its Subscription segment.
The firm's analysis led to a refinement of future estimates, particularly for fiscal years 2026-2027, where they anticipate approximately a 2% increase in projections. The new price target for Rubrik is calculated using a 13x multiple on the firm's $1.38 billion sales estimate.
InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 14 analysts recently revising their earnings expectations upward. Get access to 10+ additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
This figure includes Rubrik's net cash position of $339 million and a share count of 221 million. The price target suggests a modest 0.4x enterprise value to revenue to growth (EV/Rev/Growth) multiple for the company's cloud-only business.
The analyst highlighted several risks that could impact Rubrik's performance, including macroeconomic factors, overall IT spending trends, competitive pressures, customer concentration, the company's ongoing transition to different business models, potential free cash flow (FCF) burn, and governance concerns.
Recent InvestingPro data shows the company's revenue growing at 33.2% year-over-year, though it currently operates with moderate debt levels and isn't yet profitable.
Rubrik's updated financial outlook and the revised price target reflect the company's current subscription revenue dynamics and the firm's confidence in Rubrik's growth trajectory over the next several years. Piper Sandler's analysis suggests that, despite the potential risks, Rubrik's valuation remains attractive based on its growth prospects in the cloud sector.
In other recent news, Rubrik Inc has been making significant strides in its financial performance. The data management company reported strong revenue growth of 24.7% and exceeded earnings estimates, with a reported adjusted loss per share of 21 cents, significantly better than the estimated loss of 40 cents per share.
Rubrik's total revenue reached $236.2 million, surpassing the $217.6 million estimate. These robust results led to upward revisions in Rubrik's full-year 2025 guidance for key financial metrics, including revenue and earnings per share.
Mizuho (NYSE:MFG) Securities, and BMO Capital Markets have all responded positively to these developments, raising their price targets for Rubrik and maintaining their positive ratings on the stock. Rubrik's recent success is largely attributed to the company's robust data management platform and its effectiveness in delivering top-tier cyber resiliency. These are recent developments that investors should note.
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