Rubrik (RBRK) stock is up 25% in a single trading session after the cloud-computing and data security company crushed Wall Street estimates for its third-quarter financial results.
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The Silicon Valley-based company, which is not yet profitable, reported an adjusted loss of -$0.21 a share for the quarter. That was much better than a loss of -$0.40 expected on Wall Street. At the same time, the company announced revenue of $236.2 million, which beat analysts’ expectations of $217.5 million.
Rubrik, which makes a range of software products, said that its sales were up a hefty 43% from a year earlier in Q3. The company also announced a 55% increase in its subscription revenue to $221.5 million. The stellar performance has led investors to pile into the stock, sending the share price more than 30% higher at one-point in New York trading.
Analyst Praise
Rubrik also raised its guidance for its current Fiscal year, saying it anticipates revenue of $860 million to $862 million, up from a previous range of $830 million to $838 million. Analysts across Wall Street were quick to praise Rubrik’s results and up their price targets and ratings on the stock.
John DiFucci, a five-star rated analyst at Guggenheim, maintained a Buy rating on RBRK stock and increased his price target to $72 from $52 previously. Citigroup’ (C) Fatima Boolani, another five-star rated analyst, called Rubrik’s third quarter “top-to-bottom exceptional” and rated the stock a Buy with a price target of $75.
Rubrik went public in April of this year at a price of $32 per share. Since then the stock has gained 105%.
Is RBRK Stock a Buy?
The stock of Rubrik has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 14 Buy and one Hold recommendations issued in the last three months. The average RBRK price target of $47.62 implies 29.45% downside from current levels. However, price targets and ratings are likely to change in coming weeks following the company’s latest earnings.
