Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on RPD stock, giving a Hold rating on October 28.
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Shrenik Kothari’s rating is based on a combination of factors that reflect both the current challenges and potential opportunities for Rapid7. The company reported modest year-over-year growth in Annual Recurring Revenue (ARR) and revenue, but it also lowered its full-year ARR guidance due to ongoing issues with sales execution and deal timing. While the company’s margins remain stable, the visibility into future growth, particularly for fiscal year 2026, is uncertain.
Despite the continued growth in certain areas like Managed Detection & Response and healthy average selling prices for Exposure Command, the conversion cycles are taking longer than expected. The onboarding of new leadership, including a new CFO and CCO, alongside platform transitions, suggests that execution improvements are still underway, and any significant reacceleration in growth may take time. Given these mixed signals, Kothari has opted for a cautious stance, resulting in a Hold rating.
According to TipRanks, Kothari is a 5-star analyst with an average return of 23.5% and a 68.34% success rate. Kothari covers the Technology sector, focusing on stocks such as Elastic, Okta, and CrowdStrike Holdings.
In another report released on October 28, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $19.50 price target.