'Well-Positioned' Rubrik Faces $34-Billion Cybersecurity Opportunity: 2 Analysts Bullish After IPO

Rubrik Inc RBRK, which raised around $736 million in an April 25 IPO that was 20X oversubscribed, has witnessed high volatility in its share price.

Goldman Sachs On Rubrik: Analyst Kash Rangan initiated coverage with a Buy rating and $48 price target.

Rubrik is poised to disrupt "the decades-old, legacy-dominated $11B+ Backup and Recovery market," which has historically been a low innovation space, Rangan said in the initiation note. "Versus competitors, Rubrik's Zero Trust Design, threat intelligence engine, consumer-grade UI, and prompt recovery times stood out in customer conversations," he wrote.

Given the rising frequency and sophistication of cyberattacks, Rubrik will add more security features to its platform, which could see the company competing directly for security budgets and expand its TAM (total addressable market) by 200%-300%, the analyst stated. Rubrik's differentiated cyber resilience platform against the legacy backup TAM could generate "durable" long-term growth, he added.

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Wedbush On Rubrik: Analyst Taz Koujalgi started coverage with an Outperform rating and $50 price target.

Rubrik is gaining market share, with its competitive differentiation being driven by its "proprietary technology to combine data and metadata into self-describing data that enables it to provide Threat Analytics and other Security use cases," Koujalgi wrote.

"As traditional infrastructure companies do not have access to business data, and legacy Backup companies are unable to recover from cyber attacks, Rubrik is well positioned to provide Data Security and Cyber Resilience," he added.

The company's large addressable market is expected to grow from $36 billion at yearend to $53 billion by end-2027, the analyst stated. He further said that the expectations for fiscal 2025 appear "very conservative."

KeyBanc Capital Markets On Rubrik

Analyst Eric Heath initiated coverage with an Overweight rating and price target of $46.

There are "strong secular drivers" for both data security and backup & recovery, Heath said. He estimates the core TAM at $18 billion, with $12.5 billion for backup & recovery and $6 billion for data security, and expects this to grow to $26 billion in 2028.

The broader TAM, which is estimated at $34 billion, could growth to $56 billion by 2028, the analyst said. Rubrik has "meaningful opportunity" to gain market share from legacy vendors, he added.

RBRK Price Action: Shares of Rubrik were down1% at $36.19 Monday afternoon.

Photo courtesy of Rubrik.