BMO Capital lowered the firm’s price target on Rubrik to $38 from $40 but keeps an Outperform rating on the shares. The firm is adjusting its model to reflect the lower valuation multiples for high growth and low free cash flow margin software companies, though the company’s Q2 results were “healthy”, with a beat on annual recurring revenue – ARR – growth and a guidance raise, the analyst tells investors in a research note. Rubrik can sustain low to mid-20% y/y ARR growth over the next few years as both data volumes and security threats grow, the firm added.
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