UBS analyst Roger Boyd maintained a Buy rating on Rapid7 today and set a price target of $29.00.
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Roger Boyd’s rating is based on several strategic developments and financial metrics that suggest potential growth for Rapid7. Despite a challenging third quarter with mixed results, Boyd highlights the company’s modest revenue and margin improvements, along with a positive outlook for operating margins. The anticipated benefits from a higher mix of Detection and Response (D&R) business, combined with a new Chief Commercial Officer focusing on sales execution, are expected to drive growth.
Furthermore, Boyd points to the potential for growth through partnerships, particularly with Microsoft, which could expand Rapid7’s presence within the Microsoft install base. The addition of a new CFO, with a track record of successful financial leadership, is seen as a positive change that could enhance sales execution and address existing challenges. Boyd believes that these factors, along with a conservative guidance approach aimed at building investor trust, create a favorable risk/reward scenario for the stock, justifying the Buy rating.
According to TipRanks, Boyd is a 4-star analyst with an average return of 7.6% and a 58.33% success rate. Boyd covers the Technology sector, focusing on stocks such as Rapid7, Check Point, and Fortinet.