On Friday, Truist Securities increased its price target on shares of Rubrik Inc (NYSE:RBRK) to $75 from the previous $50, while maintaining a Buy rating on the stock. Currently trading at $53.66, the stock is near its 52-week high of $54.90.
The adjustment follows Rubrik's release of its third-quarter results, which exceeded both the analyst's and the broader market's expectations. According to InvestingPro data, 10 analysts have recently revised their earnings estimates upward, with price targets ranging from $40 to $76.
The data management firm, which recently went public, reported significant growth in its annual recurring revenue (ARR), total revenue, ARR contribution margin, and free cash flow (FCF). The company has demonstrated strong momentum with revenue growth of 24.7% and maintains a healthy gross profit margin of 69.3%.
These positive outcomes have led to an upward revision of the company's growth and profitability forecasts for the fiscal year 2025. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 12 additional exclusive insights available to subscribers.
Rubrik has also provided a promising outlook for the next fiscal year, indicating that it expects to achieve a break-even or better ARR contribution margin and a modestly positive FCF in fiscal year 2026. This optimistic projection is based on the company's unique market position as the sole provider of both cyber resiliency and data security posture management solutions.
In light of these developments, Truist Securities has raised its estimates for Rubrik's financial performance. The revised price target of $75 reflects the firm's confidence in Rubrik's continued growth trajectory and its ability to deliver on its financial goals.
In other recent news, Rubrik, Inc. posted impressive fiscal third-quarter results that exceeded market expectations. The data security firm's Subscription Annual Recurring Revenue (ARR) reached nearly $1 billion, marking a 38% year-over-year increase. Additionally, the company's third-quarter revenue 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). Analysts from firms including Cantor Fitzgerald, Mizuho (NYSE:MFG) Securities, Guggenheim, and Citi have demonstrated confidence in Rubrik's performance by raising their price targets.
Rubrik's customer base has grown significantly, with 2,085 customers contributing over $100,000 in annual recurring revenue, reflecting a 32% YoY increase. These recent developments underscore Rubrik's rapid expansion in the cybersecurity market and its potential for continued growth. However, analysts have refrained from making any predictions about the company's stock or its financial health.
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