On Friday, Cantor Fitzgerald reaffirmed its positive stance on shares of Rubrik Inc (NYSE:RBRK), raising the 12-month price target to $70 from the previous $58 while keeping an Overweight rating on the stock. The adjustment followed the company's impressive third-quarter fiscal year 2025 performance, which exceeded market expectations.
Currently trading at $53.66, Rubrik has shown remarkable momentum, with InvestingPro data revealing that 10 analysts have recently revised their earnings estimates upward for the upcoming period. Notably, analyst price targets for the stock range from $40 to $76.
The technology firm's shares saw a significant uptick, surging approximately 15% in after-hours trading. This rally was attributed to the company's third-quarter results, which showcased a subscription Annual Recurring Revenue (ARR) that was roughly 3% higher than the consensus estimates provided by FactSet.
Moreover, Rubrik's revenue for the quarter was about 8% greater than anticipated. The company has maintained strong revenue growth, with InvestingPro showing a 24.7% year-over-year increase in the last twelve months.
The analyst highlighted that Rubrik's contribution margins and Free Cash Flow (FCF) margin performed exceptionally well, surpassing expectations by 400 basis points (bps) and over 600 bps, respectively. These robust financial metrics reflect the company's strong operational performance and efficient cost management.
According to InvestingPro, the company maintains a healthy gross profit margin of 69.3% and operates with a moderate level of debt. For deeper insights into Rubrik's financial health and over 30 additional key metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
Rubrik's beat-and-raise third-quarter report has clearly resonated with investors, as evidenced by the post-earnings surge in the company's stock price. The enhanced price target from Cantor Fitzgerald suggests confidence in Rubrik's growth trajectory and its ability to sustain financial momentum going forward.
The Overweight rating indicates that the analyst believes Rubrik's stock could outperform the average total return of the stocks in the analyst's coverage universe over the next 12 to 18 months. The new price target of $70 represents the analyst's projection of the stock's potential upside from its current levels.
In other recent news, Rubrik Inc. has reported fiscal third-quarter results that surpassed expectations, with its Subscription Annual Recurring Revenue (ARR) reaching nearly $1 billion, marking a 38% year-over-year increase. The company's third-quarter revenue also saw a significant increase of 43% year-over-year, reaching $236.2 million.
In response to these strong results, Rubrik has revised the full-year 2025 guidance upwards for several key financial metrics, including revenue, Subscription ARR, Earnings Per Share (EPS), and Free Cash Flow (FCF).
In further developments, Rubrik's customer base has grown significantly, with 2,085 customers contributing over $100,000 in annual recurring revenue, reflecting a 32% YoY increase. Analysts from Mizuho (NYSE:MFG) Securities, Guggenheim, and Citi have demonstrated confidence in Rubrik's performance by raising their price targets to $68, $72, and $75 respectively.
These recent developments underscore Rubrik's rapid expansion in the cybersecurity market and its potential for continued growth. Analysts from these firms have expressed optimism about Rubrik's future performance and growth prospects. However, they have refrained from making any predictions about the company's stock or its financial health.
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