Rubrik, LLC New York Stock Exchange: RBRK is gaining momentum thanks to its business and share price. After rising more than 100% in the fourth quarter, the share price could double again next year. The company has established itself as a leading cybersecurity company specializing in data, backup and recovery for commercial and government applications. Recent news includes FedRAMP approval and service expansion to deliver strong sequential and year-over-year growth for multiple quarters. Commercial clients include major PepsiCo companies. NASDAQ: PEPAllstate NEW YORK: ALLHome Depot New York Stock Exchange: HDand technology leader Advanced Micro Devices NASDAQ: AMD.
Rubrik enters billion-dollar government cybersecurity market
Rubrik Today
(As of 12/30/2024 5:46 PM ET)
- 52 week range
- $28.34
▼
$75.79
- Target price
- $64.11
FedRAMP Approval of Rubrik, Inc. notable for two reasons. The first is obvious: approval opens the door to the public market and the long-term contracts associated with it. Second, the approval was based on the recommendation of the National Nuclear Security Administration, which carries some weight.
The bottom line is that the company would likely benefit from FedRAMP approval. Cybersecurity threats are growing at double-digit rates and will accelerate in 2024, increasing in scope and cost, and cybersecurity is in high demand among government agencies. U.S. government spending on cybersecurity in 2025 is estimated to exceed $27.5 billion, roughly double the 2024 estimate and expected to remain at record highs. NNSA’s agreement makes Rubrik the best option.
The company’s business performance since its IPO has been good. Over the first three quarters, sequential revenue growth accelerated from 9.6% in the second quarter to more than 15% in the third quarter. The results also included better-than-expected forecasts that suggest growth will continue. The company is forecasting $232.5 million in the mid-range for revenue and may be cautious with its estimates. The forecast assumes a sequential contraction that goes against the trend.
The catalyst for growth in 2025 will be the introduction of new API tools. These tools will allow users to connect their data to the mission-critical cloud infrastructure of Microsoft Azure and Amazon AWS with Rubrik installed. The conclusion is that Rubrik is in the field of artificial intelligence and can contribute to the safe development of artificial intelligence and artificial intelligence applications.
Analyst sentiment influences Rubrik stock price dynamics
Analyst sentiment trends are bullish on this stock, including increased coverage, higher consensus target, and high conviction. The number of analysts covering it reached 20 in December, up two over the month, with 18, or 90%, rating it a Buy. The price target trails the share price at the end of December but is rising, rising 50% in the calendar fourth quarter, with the revision providing a significant lift to the market. The upper target range suggests a move to $83 is possible, representing another 18% upside from the critical resistance target, with higher targets likely in 2025.
Institutional activities are also boosting this market. Institutions have been buying the stock in droves since its IPO and have acquired more than 50% of its shares, with activity picking up in the fourth quarter. Holders include ETFs and mutual funds, public and private investment capital, which provide a stable base of support. Their activity coincides with the market bottom and subsequent rally to new highs.
Rubrik’s technical prospects are good. The 2024 uptrend is marked by high volume and bullish momentum, which is likely to push stock prices higher. Critical resistance is around $75 and will likely be tested in early January. A move to the highs is a bullish signal. In this scenario, this stock could rise another $35 and reach the $110 level, which is the same size as the rally that occurred before it.
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