Shares of cybersecurity firm Rapid7 (RPD) plummeted by 5.14% during Thursday's trading session, continuing its downward trend as multiple analysts lowered their price targets on the stock.
Several Wall Street firms including Jefferies, Barclays, and Piper Sandler decreased their price objectives on Rapid7, citing concerns over the company's slowing growth and future prospects. Jefferies lowered its target to $45 from $50, while Barclays and Piper Sandler both cut their targets to $35, down from $43 and $40 respectively.
The analysts' cautious stance reflects growing concerns about Rapid7's ability to sustain its previous growth trajectory, especially in light of recent quarterly results that fell short of expectations. The company's fourth-quarter annualized recurring revenue (ARR) growth of 4.2% year-over-year was seen as a disappointment, prompting analysts to reevaluate their forecasts and valuation models.
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