19 Analysts Assess Rapid7: What You Need To Know

Analysts' ratings for Rapid7 RPD over the last quarter vary from bullish to bearish, as provided by 19 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $34.74, a high estimate of $45.00, and a low estimate of $21.00. A 14.09% drop is evident in the current average compared to the previous average price target of $40.44.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Rapid7 by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Rapid7. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Rapid7 compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Rapid7's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Rapid7's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Get to Know Rapid7 Better

Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response; security information and event management; cloud security, threat intelligence, and application security; and security orchestration, automation, and response. The Boston-based company went public in 2015.

Rapid7: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3M period, Rapid7 showcased positive performance, achieving a revenue growth rate of 5.36% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Rapid7's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -0.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Rapid7's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -25.97%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Rapid7's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.09%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 57.49, Rapid7 faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.