Rapid7 (RPD) Stock: Why The Price Increased 6.53%

Apr 12th, 2022 7:11 EST
  • The stock price of Rapid7 Inc (NASDAQ: RPD) increased by 6.53% in the most recent trading session. This is why.

The stock price of Rapid7 Inc (NASDAQ: RPD) increased by 6.53% in the most recent trading session. Investors are responding positively to a bullish research report. 

Wolfe Research analyst Joshua Tilton initiated coverage on Rapid7 with an “Outperform” rating. And Tilton assigned the company a price target of $122 (16% upside).

“If there is one thing to take away from this launch it’s that Rapid7 is no longer just a Vulnerability Management vendor. Over the years Rapid7, led by CEO Corey Thomas, has acquired or developed a complete cloud-based security platform with solutions addressing customers most pressing concerns as they continue to migrate to the cloud. This shift away from purely VM has diversified the company’s revenue streams and, we expect, will enable the company to continue to penetrate what management estimates to be a $37 billion opportunity and 74K potential customers (both of which are still low single digits penetrated). In fact, as of Q4 2021, more than half of Rapid7’s ARR is from non-vulnerability management offerings,” wrote Tilton in a research note.

Tilton also cited more opportunities for the company. The ARR per customer stood at $58K out of a potential $500K per customer at full platform adoption, which represents a $5.1 billion opportunity for the company’s existing customer base.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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