Wells Fargo analyst Andrew Nowinski reiterated a Buy rating on Rubrik, Inc. Class A (RBRK – Research Report) yesterday and set a price target of $80.00.
Andrew Nowinski has given his Buy rating due to a combination of factors that highlight Rubrik, Inc.’s strong financial performance and promising future outlook. The company concluded its fiscal year 2025 with impressive results, surpassing its Subscription Annual Recurring Revenue (ARR) guidance by 3%, and demonstrating significant progress towards achieving break-even profitability. Furthermore, Rubrik’s management has provided guidance for fiscal year 2026 that exceeds market expectations, forecasting a 30% increase in revenue and a 24% rise in ARR, which underscores the company’s potential for continued growth.
Additionally, Rubrik’s transition to cloud services has been a key driver of its ARR growth, with cloud-based ARR now accounting for 80% of the total Subscription ARR. This shift has not only bolstered the company’s financial metrics but also aligns with the broader market trend of prioritizing cyber resilience. The company is also making strides in improving its contribution and free cash flow margins, with expectations of further leverage in sales and general administrative expenses. These factors collectively support Nowinski’s optimistic outlook and the decision to raise the price target to $80.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RBRK in relation to earlier this year.