In light of these factors, Citi has raised its near-term and medium-term estimates for Rubrik and increased the target multiple, leading to the new price target of $75. This reflects the firm's optimism about Rubrik's future performance and growth prospects. The stock has shown remarkable momentum, with a 61.24% return over the past six months and is currently trading near its 52-week high of $54.90.
InvestingPro subscribers can access detailed valuation metrics, comprehensive financial analysis, and expert insights through the exclusive Pro Research Report, available for over 1,400 US stocks. The stock has shown remarkable momentum, with a 61.24% return over the past six months and is currently trading near its 52-week high of $54.90. InvestingPro subscribers can access detailed valuation metrics, comprehensive financial analysis, and expert insights through the exclusive Pro Research Report, available for over 1,400 US stocks.
In light of these factors, Citi has raised its near-term and medium-term estimates for Rubrik and increased the target multiple, leading to the new price target of $75. This reflects the firm's optimism about Rubrik's future performance and growth prospects. The stock has shown remarkable momentum, with a 61.24% return over the past six months and is currently trading near its 52-week high of $54.90. InvestingPro subscribers can access detailed valuation metrics, comprehensive financial analysis, and expert insights through the exclusive Pro Research Report, available for over 1,400 US stocks.
The analyst from Citi highlighted Rubrik's exceptional execution during the quarter, which stood out not only in relative terms but also as an absolute performance within their coverage for this reporting season. The demand for Rubrik's products was broad-based, and the company's messaging on cyber resiliency is gaining traction, as indicated by the upward revision of their full-year forecasts.
Rubrik's ongoing product development, particularly the traction of emerging product lines and the potential of their GenAI initiative, combined with disciplined operational expenditure, reinforces Citi's confidence in the company's ability to sustain a high-quality 25-30% growth trajectory in Subscription ARR. This outlook is bolstered by a comparison with peer Veeam, which was recently valued at $15 billion despite exhibiting only half of Rubrik's growth rate, albeit with better profitability.
In light of these factors, Citi has raised its near-term and medium-term estimates for Rubrik and increased the target multiple, leading to the new price target of $75. This reflects the firm's optimism about Rubrik's future performance and growth prospects.
In other recent news, Rubrik, Inc. reported a strong third quarter with revenue reaching $236.2 million, marking a 43% increase year-over-year (YoY) and exceeding the consensus estimate of $217.5 million. The data security company also recorded a narrower adjusted loss per share of $0.21, compared to analysts' expectation of a $0.40 loss.
A key growth metric, the Subscription Annual Recurring Revenue (ARR), surged by 38% YoY to $1.0 billion, highlighting Rubrik's rapid expansion in the cybersecurity market.
These recent developments include the company's raised outlook for the full fiscal year 2025, with Rubrik now expecting its revenue to be between $860-862 million, surpassing the analysts' projection of $834.9 million. For the fourth quarter, the company forecasts revenue to be between $231.5 million and $233.5 million, which is above the consensus estimate of $225.1 million.
Rubrik's customer base also grew significantly with 2,085 customers contributing over $100,000 in annual recurring revenue, a 32% YoY increase. This growth indicates Rubrik's robust position in the market.
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