Rapid7 (RPD) PT Raised to $13 at Stifel

Stifel analyst Brad Reback raised the price target on Rapid7 (NASDAQ: RPD) to $13.00 (from $7.00) while maintaining a Hold rating.

The analyst commented, "Rapid7 delivered a nice print against a low bar, with all key metrics above subdued guidance and/or Stifel/street expectations. That said, while ARR was $4M dollars above expectations ($824M vs. $820M), ARR still fell (-2.0%) Y/Y, resulting in the 18th consecutive quarter of Y/Y ARR growth deceleration and the second-consecutive quarter of Y/Y ARR declines. Core ARR (D&R/EM) grew 1%, with non-core assets continuing to decline.Given this was Mr. Mohamed's first quarter as CEO, he outlined the company's strategy which is a multi-quarter effort around focus (mid-market/enterprise), product (going deeper in D&R and EM), and automation (AI). To support these efforts, Rapid7 announced a restructuring plan, including a 12% RIF.Looking ahead, F3Q ARR and Revenue guidance were below consensus (with Operating Income/EPS above), with the company narrowing the range for Revenue/FCF guidance while raising Operating Income/EPS guidance."

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