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Rapid7 price target lowered to $42 from $45 at Piper Sandler

Piper Sandler analyst Rob Owens lowered the firm’s price target on Rapid7 to $42 from $45 and keeps a Neutral rating on the shares. The firm says stability was seen in Q2 results after Q1 performance sent guidance lower, but the business continues to face headwinds given a challenging macro environment/VM demand landscape. Some strength shined through with Threat Complete demand, and Piper believes management’s focus on improving the product portfolio is the right move to set the table for longer-term growth. However, with Q2 NNARR down over 60% year-over-year and a strong second half of the year ramp still implying NNARR will be down -46% for the year, it will clearly take time for improvements to show through and meaningful growth to resume, says the firm.

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