Rapid7 (NASDAQ:RPD) burst upward today, adding double-digit gains to its share price. The biggest reason traces back to new moves that suggest this cybersecurity company may have new ownership in the not-too-distant future. Rapid7 recently drew the attention of at least one interested party looking to acquire the company. These aren’t idle rumors, either; those same reports note that Rapid7 is working with Goldman Sachs Group to better evaluate the proposals.
Granted, this is all still very early-stage stuff, so there may never be a deal that actually comes out of this. However, the move was sufficient by itself to capture investor interest. Rapid7 focuses mainly on “vulnerability management.” It gives businesses tools to protect themselves against outside intrusion, as well as services in that same vein for those who’d rather not maintain the necessary departments to use these tools.
Rapid7’s reputation was apparently sufficient to draw Peiter Zatko, the former head of security at Twitter. However, it’s recently faced challenging times as corporate customers scale back spending, even on cybersecurity. Despite this, Rapid7 still draws interest from potential buyers all up and down the chain, even private equity buyers.
Overall, analyst consensus calls Rapid7 stock a Moderate Buy. However, the stock also has 11.38% downside risk thanks to its average price target of $43.54.