Rubrik (RBRK) Receives Buy Rating from BTIG Amid Positive Demand Signals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Strong Demand Trends: BTIG analyst Gray Powell noted that Rubrik's demand trends were described as healthy to strong during discussions with four partners, particularly showing an uptick in April, indicating the company's sustained market appeal.
- Market Share Gains: Rubrik continues to gain significant market share against legacy backup vendors, demonstrating increasing recognition and competitiveness of its products among clients, which may further drive revenue growth.
- Limited Cost Impact: Despite rising memory prices raising investor concerns, analysis suggests that this factor has a limited impact on purchasing decisions, with total deployment cost effects expected to remain in the low to mid-single digits, thus not hindering customer buying intentions.
- Upward Guidance Expectations: BTIG anticipates that Rubrik will exceed the market's annual recurring revenue (ARR) estimate of $1.547 billion and may raise its full-year guidance in the upcoming earnings report, reflecting the company's strong growth potential.
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Analyst Views on RBRK
Wall Street analysts forecast RBRK stock price to rise
20 Analyst Rating
19 Buy
1 Hold
0 Sell
Strong Buy
Current: 68.310
Low
95.00
Averages
111.22
High
130.00
Current: 68.310
Low
95.00
Averages
111.22
High
130.00
About RBRK
Rubrik, Inc. is a cloud data management company. The Company has developed Zero Trust Data Security platform. It helps organizations achieve business resilience against cyberattacks, malicious insiders, and operational disruptions. Its Rubrik Security Cloud (RSC) secures data across enterprise, cloud, and software-as-a-service (SaaS) application. RSC detects, analyzes, and remediates data security risks and unauthorized user activities. It has developed a proprietary machine learning and artificial intelligence-based data threat monitoring and management engine to surface anomalous activities and indicators of data breaches. In addition, the Company offers Ruby for artificial intelligence (AI) data defense and recovery. Ruby is designed to help customers scale their data security operations with automation, boosting productivity, and bridging the users’ skills gap.
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.
Rubrik (RBRK) Receives Buy Rating from BTIG Amid Positive Demand Signals
- Strong Demand Trends: BTIG analyst Gray Powell noted that Rubrik's demand trends were described as healthy to strong during discussions with four partners, particularly showing an uptick in April, indicating the company's sustained market appeal.
- Market Share Gains: Rubrik continues to gain significant market share against legacy backup vendors, demonstrating increasing recognition and competitiveness of its products among clients, which may further drive revenue growth.
- Limited Cost Impact: Despite rising memory prices raising investor concerns, analysis suggests that this factor has a limited impact on purchasing decisions, with total deployment cost effects expected to remain in the low to mid-single digits, thus not hindering customer buying intentions.
- Upward Guidance Expectations: BTIG anticipates that Rubrik will exceed the market's annual recurring revenue (ARR) estimate of $1.547 billion and may raise its full-year guidance in the upcoming earnings report, reflecting the company's strong growth potential.
See More
Rubrik Upgraded to Outperform by Oppenheimer Amid Recovery in Demand
- Significant Demand Recovery: Oppenheimer upgraded Rubrik from Perform to Outperform, highlighting a strong recovery in backup and recovery demand, with the quarterly score rising from negative 0.15 to positive 0.98, indicating renewed market confidence.
- Pricing Strategy Optimization: Analysts noted that current component pricing for backup and recovery is not impacting demand, reflecting the company's strengthening competitive position, which is expected to drive future performance growth.
- Attractive Valuation: Rubrik is currently trading at 6.3x FY+2 EV/Sales, below the 12-month average of 9.0x, indicating that the stock is undervalued and the market is likely to return to its normal trading multiples.
- Earnings Report Expectations: Rubrik plans to release its Q1 FY2027 earnings report on June 4, with analysts expecting an adjusted loss per share of $0.03 on revenue of $366.3 million, reflecting cautious optimism about the company's future growth.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Buy on Broadcom: Goldman raised Broadcom's price target from $480 to $500, anticipating strong CapEx spending patterns from key customers, indicating that the upcoming earnings report may exceed market expectations.
- Oppenheimer Upgrades Rubrik: Oppenheimer upgraded Rubrik from Perform to Outperform with a price target of $85, based on strong checks from value-added resellers, highlighting the product's competitive strength in the market.
- UBS Upgrades Packaging Corp: UBS upgraded Packaging Corp from Neutral to Buy, expecting the $50/ton price hike to stick, which, combined with high utilization and prior capacity cuts, could add approximately $290 million in annualized EBITDA.
- Deutsche Bank Upgrades Humana: Deutsche Bank believes there is still time to buy shares of Humana, upgrading its rating to Buy, as it anticipates a new rally in managed care organizations that is just beginning.
See More
Tech Stocks Poised for Future Growth
- Rubrik's Market Leadership: Rubrik has been named a leader in the backup and data protection space by Gartner for six consecutive years, with 2022 revenue reaching $1.26 billion, a 53% year-over-year increase, and is expected to achieve a small profit this year, showcasing its strong competitiveness in the rapidly growing cybersecurity market.
- Nice's AI Customer Service Innovation: Nice leverages AI to automate customer service, handling over 20 billion customer interactions annually, with 2022 revenue nearing $3 billion and projected earnings per share between $10.85 and $11.05 this year, indicating its leadership position and future growth potential in the CCaaS industry.
- Nebius's Cloud Computing Outlook: Nebius specializes in AI infrastructure and, despite currently being unprofitable, has distinguished itself through major partnerships with Microsoft and Meta, with analysts projecting over 500% revenue growth this year to $3.3 billion, highlighting its significant potential in the AI infrastructure market.
- Industry Growth Trends: According to Precedence Research, the global cybersecurity market is expected to grow at an average annual rate of nearly 13% through 2034, while the AI infrastructure market is projected to grow at an annualized pace of 23%, providing vast market opportunities for companies like Rubrik, Nice, and Nebius.
See More
Latest Wall Street Rating Updates
- Apple's Positive Outlook: Bank of America reiterates a buy rating on Apple, forecasting that iPhone revenues will exceed expectations in 2026 due to record upgraders and strong gross margins despite commodity pressures, indicating sustained competitiveness in the smartphone market.
- Roblox Demand Slowdown: Bank of America downgrades Roblox to neutral, citing a significant decline in platform demand; while acknowledging its ability to compress development costs, the uncertainty around the timeline for demand recovery may impact its market performance.
- CoreWeave Growth Potential: Citi reiterates CoreWeave as a buy, raising its price target from $126 to $155, estimating a quarterly growth of 35-40% in AI infrastructure, showcasing strong performance across a diversified customer base.
- Hershey's Positive Outlook: TD Cowen upgrades Hershey to buy, expressing confidence that the company will raise its 2026 guidance and return to volume growth in 2027, reflecting strong recovery potential in the confectionery market.
See More
Jefferies Initiates Coverage on Cybersecurity Firms
- Rubrik Rating and Price Target: Jefferies initiated coverage on Rubrik (RBRK) with a Buy rating and a price target of $65, highlighting the company's strong position in cyber resilience and projecting significant upside in FY27 annual recurring revenue (ARR) estimates, with expected growth rates exceeding 20%.
- Commvault Transformation and Market Opportunities: Jefferies set a $105 price target for Commvault (CVLT), noting its evolution from a traditional backup vendor to a cyber resilience platform, with SaaS ARR increasing from 9% in FY22 to 33.5% as of F3Q26, indicating strong market adaptability despite early-stage growth potential.
- AvePoint Market Positioning: Jefferies rated AvePoint (AVPT) as a Buy with a $16 price target, emphasizing its strengthening position in both enterprise and SMB markets, and projecting a 26% year-over-year growth in ARR, positioning it well to benefit from consolidating data management expenditures amid rising AI implementation demands.
- Market Reaction and Stock Movements: Rubrik's shares rose approximately 1%, while AvePoint also saw positive movement, contrasting with Commvault's decline of about 1%, reflecting varying investor reactions to these rating changes and underscoring the market's focus on cybersecurity sector dynamics.
See More
Rubrik (RBRK) Receives Buy Rating from BTIG Amid Positive Demand Signals
- Strong Demand Trends: BTIG analyst Gray Powell noted that Rubrik's demand trends were described as healthy to strong during discussions with four partners, particularly showing an uptick in April, indicating the company's sustained market appeal.
- Market Share Gains: Rubrik continues to gain significant market share against legacy backup vendors, demonstrating increasing recognition and competitiveness of its products among clients, which may further drive revenue growth.
- Limited Cost Impact: Despite rising memory prices raising investor concerns, analysis suggests that this factor has a limited impact on purchasing decisions, with total deployment cost effects expected to remain in the low to mid-single digits, thus not hindering customer buying intentions.
- Upward Guidance Expectations: BTIG anticipates that Rubrik will exceed the market's annual recurring revenue (ARR) estimate of $1.547 billion and may raise its full-year guidance in the upcoming earnings report, reflecting the company's strong growth potential.
See More
Rubrik Upgraded to Outperform by Oppenheimer Amid Recovery in Demand
- Significant Demand Recovery: Oppenheimer upgraded Rubrik from Perform to Outperform, highlighting a strong recovery in backup and recovery demand, with the quarterly score rising from negative 0.15 to positive 0.98, indicating renewed market confidence.
- Pricing Strategy Optimization: Analysts noted that current component pricing for backup and recovery is not impacting demand, reflecting the company's strengthening competitive position, which is expected to drive future performance growth.
- Attractive Valuation: Rubrik is currently trading at 6.3x FY+2 EV/Sales, below the 12-month average of 9.0x, indicating that the stock is undervalued and the market is likely to return to its normal trading multiples.
- Earnings Report Expectations: Rubrik plans to release its Q1 FY2027 earnings report on June 4, with analysts expecting an adjusted loss per share of $0.03 on revenue of $366.3 million, reflecting cautious optimism about the company's future growth.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Buy on Broadcom: Goldman raised Broadcom's price target from $480 to $500, anticipating strong CapEx spending patterns from key customers, indicating that the upcoming earnings report may exceed market expectations.
- Oppenheimer Upgrades Rubrik: Oppenheimer upgraded Rubrik from Perform to Outperform with a price target of $85, based on strong checks from value-added resellers, highlighting the product's competitive strength in the market.
- UBS Upgrades Packaging Corp: UBS upgraded Packaging Corp from Neutral to Buy, expecting the $50/ton price hike to stick, which, combined with high utilization and prior capacity cuts, could add approximately $290 million in annualized EBITDA.
- Deutsche Bank Upgrades Humana: Deutsche Bank believes there is still time to buy shares of Humana, upgrading its rating to Buy, as it anticipates a new rally in managed care organizations that is just beginning.
See More
Tech Stocks Poised for Future Growth
- Rubrik's Market Leadership: Rubrik has been named a leader in the backup and data protection space by Gartner for six consecutive years, with 2022 revenue reaching $1.26 billion, a 53% year-over-year increase, and is expected to achieve a small profit this year, showcasing its strong competitiveness in the rapidly growing cybersecurity market.
- Nice's AI Customer Service Innovation: Nice leverages AI to automate customer service, handling over 20 billion customer interactions annually, with 2022 revenue nearing $3 billion and projected earnings per share between $10.85 and $11.05 this year, indicating its leadership position and future growth potential in the CCaaS industry.
- Nebius's Cloud Computing Outlook: Nebius specializes in AI infrastructure and, despite currently being unprofitable, has distinguished itself through major partnerships with Microsoft and Meta, with analysts projecting over 500% revenue growth this year to $3.3 billion, highlighting its significant potential in the AI infrastructure market.
- Industry Growth Trends: According to Precedence Research, the global cybersecurity market is expected to grow at an average annual rate of nearly 13% through 2034, while the AI infrastructure market is projected to grow at an annualized pace of 23%, providing vast market opportunities for companies like Rubrik, Nice, and Nebius.
See More
Latest Wall Street Rating Updates
- Apple's Positive Outlook: Bank of America reiterates a buy rating on Apple, forecasting that iPhone revenues will exceed expectations in 2026 due to record upgraders and strong gross margins despite commodity pressures, indicating sustained competitiveness in the smartphone market.
- Roblox Demand Slowdown: Bank of America downgrades Roblox to neutral, citing a significant decline in platform demand; while acknowledging its ability to compress development costs, the uncertainty around the timeline for demand recovery may impact its market performance.
- CoreWeave Growth Potential: Citi reiterates CoreWeave as a buy, raising its price target from $126 to $155, estimating a quarterly growth of 35-40% in AI infrastructure, showcasing strong performance across a diversified customer base.
- Hershey's Positive Outlook: TD Cowen upgrades Hershey to buy, expressing confidence that the company will raise its 2026 guidance and return to volume growth in 2027, reflecting strong recovery potential in the confectionery market.
See More
Jefferies Initiates Coverage on Cybersecurity Firms
- Rubrik Rating and Price Target: Jefferies initiated coverage on Rubrik (RBRK) with a Buy rating and a price target of $65, highlighting the company's strong position in cyber resilience and projecting significant upside in FY27 annual recurring revenue (ARR) estimates, with expected growth rates exceeding 20%.
- Commvault Transformation and Market Opportunities: Jefferies set a $105 price target for Commvault (CVLT), noting its evolution from a traditional backup vendor to a cyber resilience platform, with SaaS ARR increasing from 9% in FY22 to 33.5% as of F3Q26, indicating strong market adaptability despite early-stage growth potential.
- AvePoint Market Positioning: Jefferies rated AvePoint (AVPT) as a Buy with a $16 price target, emphasizing its strengthening position in both enterprise and SMB markets, and projecting a 26% year-over-year growth in ARR, positioning it well to benefit from consolidating data management expenditures amid rising AI implementation demands.
- Market Reaction and Stock Movements: Rubrik's shares rose approximately 1%, while AvePoint also saw positive movement, contrasting with Commvault's decline of about 1%, reflecting varying investor reactions to these rating changes and underscoring the market's focus on cybersecurity sector dynamics.
See More
