Rapid7 downgraded to Hold at Canaccord on ‘soft’ 2023 outlook

As previously reported, Canaccord analyst T. Michael Walkley downgraded Rapid7 to Hold from Buy with a price target of $52, down from $55, following the company’s quarterly report. While Q4 results were "solid" in light of sustained macro challenges, the "soft" 2023 outlook was below expectations as the company anticipates macro pressures to persist throughout the year, the analyst tells investors. The firm believes Rapid7 has strong expansion opportunities within its customer base and "a long runway to drive net customer adds," but is moving to the sidelines following the softer-than-anticipated guidance.