Rapid7 downgraded to Hold from Buy at Stifel

Stifel analyst Adam Borg downgraded Rapid7 (RPD) to Hold from Buy with a price target of $42, down from $48, following a transfer of coverage. While Rapid7 is a “solid asset,” Stifel is taking a cautious approach to the vulnerability management market overall, as checks suggest it is a relatively lower cybersecurity priority, the analyst tells investors in a research note. Stifel acknowledges Rapid7’s valuation is “undemanding” and that Rapid7 is a potential takeout target, but it awaits further signs of execution progress and improving vulnerability management prioritization before becoming more constructive on the shares.