Mizuho Lowers Rapid7 Price Target to $16 Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Yahoo Finance
- Price Target Revision: Mizuho analyst Gregg Moskowitz has lowered Rapid7's price target from $20 to $16 while maintaining a Neutral rating, reflecting concerns over valuation compression in software companies, particularly due to AI-related disruptions.
- Moderate Budget Activity: Despite solid public cloud performance and strong AI adoption, Mizuho noted that budget activity is more moderate than typical, which could impact Rapid7's future growth potential.
- Increased Competitive Pressure: Truist also reduced Rapid7's price target to $14, and while strong Q4 results are expected, conservative guidance for 2026 may dampen investor confidence and increase market uncertainty.
- Market Environment Challenges: Rapid7 faces significant market pressures in the cybersecurity sector, and although IT budgets remain steady, the overall challenges facing software equities could suppress its stock performance.
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Analyst Views on RPD
Wall Street analysts forecast RPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RPD is 30.19 USD with a low forecast of 21.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
5 Buy
14 Hold
1 Sell
Hold
Current: 10.510
Low
21.00
Averages
30.19
High
40.00
Current: 10.510
Low
21.00
Averages
30.19
High
40.00
About RPD
Rapid7, Inc. is a global cybersecurity software and services provider. It has the expertise of the security operations center (SOC) across information security, cloud operations, development, and information technology (IT) teams, enabling them to understand the attacker and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete (MTC) is its flagship offering and unifies the leading detection and response of Rapid7 Managed Detection and Response (MDR) and the exposure management of Rapid7 Managed Vulnerability Management (MVM) to manage customer’s imminent risks, pinpoint and eliminate threats as early as possible and build resiliency for their future. Its Rapid7 Threat Complete unifies Rapid7 InsightIDR (InsightIDR) and Rapid7 InsightVM (InsightVM) to provide complete risk and threat coverage in a single offering. Its security solutions help more than 11,000 global customers unite cloud risk management and threat detection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Software Sector Faces Worst Drawdown in a Decade
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- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
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Mizuho Lowers Rapid7 Price Target to $16 Amid AI Concerns
- Price Target Revision: Mizuho analyst Gregg Moskowitz has lowered Rapid7's price target from $20 to $16 while maintaining a Neutral rating, reflecting concerns over valuation compression in software companies, particularly due to AI-related disruptions.
- Moderate Budget Activity: Despite solid public cloud performance and strong AI adoption, Mizuho noted that budget activity is more moderate than typical, which could impact Rapid7's future growth potential.
- Increased Competitive Pressure: Truist also reduced Rapid7's price target to $14, and while strong Q4 results are expected, conservative guidance for 2026 may dampen investor confidence and increase market uncertainty.
- Market Environment Challenges: Rapid7 faces significant market pressures in the cybersecurity sector, and although IT budgets remain steady, the overall challenges facing software equities could suppress its stock performance.
See More
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- Global Defense Show Participation: QSE will participate in the World Defense Show in Saudi Arabia in February 2026, leveraging this opportunity to connect with government and military leaders and showcase its technological solutions in post-quantum security, further enhancing its international influence.
- Technology Certification and Market Readiness: QSE has achieved Level 2 Certification under the CyberSecure Canada program and, through a strategic partnership with NUSA Networks, has rapidly accessed the Indonesian market, ensuring its technology's application in critical national infrastructure and enhancing its competitive edge.
- Funding and Expansion Plans: QSE recently secured C$2.8 million in financing, ensuring the smooth execution of its global expansion roadmap throughout 2026, with the post-quantum cryptography market projected to reach $17.69 billion by 2034, further solidifying its market position.
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- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
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- Price Target Revision: Mizuho analyst Gregg Moskowitz has lowered Rapid7's price target from $20 to $16 while maintaining a Neutral rating, reflecting concerns over valuation compression in software companies, particularly due to AI-related disruptions.
- Moderate Budget Activity: Despite solid public cloud performance and strong AI adoption, Mizuho noted that budget activity is more moderate than typical, which could impact Rapid7's future growth potential.
- Increased Competitive Pressure: Truist also reduced Rapid7's price target to $14, and while strong Q4 results are expected, conservative guidance for 2026 may dampen investor confidence and increase market uncertainty.
- Market Environment Challenges: Rapid7 faces significant market pressures in the cybersecurity sector, and although IT budgets remain steady, the overall challenges facing software equities could suppress its stock performance.
See More
Quantum Secure Encryption Corp. Joins 2026 World Defense Show, Driving $49.1 Billion Defense Investment
- Investment Trends: Defense technology investment reached $49.1 billion in 2025, indicating a significant shift of institutional capital towards quantum security and AI-driven infrastructure, reflecting strong demand for emerging security solutions.
- Global Expansion Plans: QSE will represent Canada at the 2026 World Defense Show, leveraging this opportunity to connect with government and military leaders to promote quantum security solutions for critical infrastructure.
- Technology Certification and Market Readiness: QSE has achieved Level 2 Certification under the CyberSecure Canada program and, through a strategic partnership with NUSA Networks, has rapidly accessed the Indonesian market, ensuring its technology's application in national infrastructure.
- Funding and Growth Outlook: QSE recently secured C$2.8 million in financing to support its global expansion roadmap, with the global post-quantum cryptography market projected to reach $17.69 billion by 2034, indicating strong market potential.
See More
Quantum Secure Encryption Corp. Joins Global Defense Show to Drive $49.1 Billion Investment
- Investment Trends: Defense technology investments reached $49.1 billion in 2025, indicating a shift of institutional capital towards quantum and AI-driven security infrastructure to address asymmetric risks, thereby driving market demand and growth potential for related companies.
- Global Defense Show Participation: QSE will participate in the World Defense Show in Saudi Arabia in February 2026, leveraging this opportunity to connect with government and military leaders and showcase its technological solutions in post-quantum security, further enhancing its international influence.
- Technology Certification and Market Readiness: QSE has achieved Level 2 Certification under the CyberSecure Canada program and, through a strategic partnership with NUSA Networks, has rapidly accessed the Indonesian market, ensuring its technology's application in critical national infrastructure and enhancing its competitive edge.
- Funding and Expansion Plans: QSE recently secured C$2.8 million in financing, ensuring the smooth execution of its global expansion roadmap throughout 2026, with the post-quantum cryptography market projected to reach $17.69 billion by 2034, further solidifying its market position.
See More
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- HCA Options Volume: HCA Healthcare's options trading volume reached 4,344 contracts, representing approximately 434,400 shares, which is about 41.5% of its average daily trading volume over the past month, indicating a significant increase in market interest in the stock.
- High-Frequency Trading Analysis: Notably, the $430 strike put option expiring on February 20, 2026, saw 2,405 contracts traded today, equating to approximately 240,500 shares, suggesting heightened investor expectations for potential price declines in the future.
- KTOS Options Activity: In parallel, Kratos Defense & Security Solutions recorded an options trading volume of 13,906 contracts, approximately 1.4 million shares, which accounts for 41.4% of its average daily trading volume over the past month, reflecting strong activity in its stock.
- Bullish Call Option Trend: For KTOS, the $124 strike call option traded 806 contracts today, representing about 80,600 shares, indicating a bullish sentiment among investors regarding the company's future performance.
See More
Citi Places Negative Catalyst Watch on Check Point (CHKP) and Varonis (VRNS)
- Expense Model Concerns: Citi analyst Fatima Boolani highlighted that the market is underestimating Check Point's expenses for 2026, with operating margins projected around 40%, which could negatively impact the company's future profitability.
- Convertible Debt Impact: The issuance of $2 billion in convertible debt by Check Point may indicate the likelihood of significant future M&A, which could further dilute shareholder value and heighten concerns about its financial health.
- Increased Competition Risks: For Varonis, Boolani noted that the company checks several boxes as a potential acquisition candidate, but growing competition in the data security space may lead buyers to pause their acquisition intentions, affecting future revenue growth.
- Rapid7 Downgrade: Citi downgraded Rapid7 from Buy to Neutral, believing the current risk-reward profile is balanced, with expectations for low-single-digit revenue growth and limited overall profitability upside due to competitive pressures.
See More
