William Blair analyst Jonathan Ho has maintained their bullish stance on RPD stock, giving a Buy rating today.
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Jonathan Ho has given his Buy rating due to a combination of factors that highlight both challenges and potential opportunities for Rapid7. Despite the recent disappointing quarter with a decline in billings and sales execution issues, the company has brought in new leadership, including a new chief commercial officer and chief financial officer, who bring significant experience in the cybersecurity space. This change in management is seen as a potential catalyst for improved execution and stronger operational leverage in the future.
Moreover, Jonathan Ho believes that while the company’s current valuation does not reflect its underlying business value, there are overlooked opportunities that could drive growth. These include partnerships, such as the one with Microsoft, and the potential of its MDR business and detection and response platform. Although the company faces challenges, the belief is that with patience and the implementation of disciplined sales processes, Rapid7 can overcome its current hurdles and capitalize on its strategic opportunities.
According to TipRanks, Ho is a 4-star analyst with an average return of 8.7% and a 50.00% success rate. Ho covers the Technology sector, focusing on stocks such as Allot, Cellebrite DI, and Palo Alto Networks.
In another report released today, UBS also maintained a Buy rating on the stock with a $29.00 price target.