KeyBanc downgrades Rapid7 as agency tweaks estimates on cybersecurity sector (NASDAQ:RPD)

Funding agency KeyBanc Capital Markets downgraded Rapid7 (NASDAQ:RPD) on Wednesday because the analysis outlet additionally tweaked its estimates on a number of different cybersecurity corporations following latest checks.

Analyst Michael Turits lowered his score on Rapid7 (RPD) to sector weight whilst the corporate topped third-quarter outcomes due to a rise in annual recurring income.

“We’re optimistic on [Rapid7’s] spectacular multi-year shift to cloud and platform growth past [virtual machines] into strategic areas of safety, together with Cloud Sec, Software Sec and XDR, however have retained warning round their long-term outlook for platform cross-sell, compounded close to time period by macro,” Turits wrote within the word.

Rapid7 (RPD) shares had been down practically 2% in premarket buying and selling on Wednesday.

Latest October checks additionally resulted within the agency making adjustments to numerous different firms, however the agency reiterated its chubby score and $210 worth goal on Palo Alto Networks (NASDAQ:PANW) going into the corporate’s quarterly outcomes on November 17.

“We anticipate robust Palo Alto Networks [first-quarter] income, product, Subsequent Gen ARR and billings, however are unsure in regards to the [second-quarter] information,” Turits defined. The analyst added that there might be “some softness” within the remaining efficiency obligations and implied bookings and backlog because of the weakening economic system.

Nonetheless, Palo Alto (PANW) remains to be seen as a “excessive precedence spend” for its prospects and it’s considered as “the consolidator finest positioned in cloud in addition to on [premise], with aggressive [secure access service edge], cloud safety, endpoint and community safety choices.”

Turits raised his estimates for the first-half of 2023 billings, however lowered his billings estimates for the second-half of the corporate’s fiscal 12 months, whereas additionally trimming estimates for fiscal 2024 and 2025.

The analyst maintained his chubby score on Fortinet (NASDAQ:FTNT), however lowered estimates, with the agency changing into “cautious” after its third-quarter outcomes present a miss in backlog and bookings, whereas additionally stating that Palo Alto Networks (PANW) has “extra aggressive choices in each [secure access service edge] and Cloud safety.”

Turits additionally lowered estimates on CyberArk (CYBR), Okta (OKTA) however reiterated the agency’s chubby scores on each firms. He additionally tweaked income progress estimates for CheckPoint Software program (CHKP) amid latest indicators of “slowing bookings” and saved the agency’s sector weight score on the Israeli-based firm.

Earlier this month, Rapid7 (RPD) shares plunged after it reduce its annual recurring income outlook for fiscal 2022 and Truist downgraded the inventory, citing worries over execution.

Analysts are principally optimistic on Rapid7 (RPD). It has a BUY score from In search of Alpha authors, whereas Wall Road analysts charge it a BUY. Conversely, In search of Alpha’s quant system, which persistently beats the market, additionally charges RPD a HOLD.