Mizuho Trims Rapid7 (RPD) PT to $16, Maintains Neutral Rating

Although channel checks revealed solid public cloud performance and very strong AI adoption, the firm noted more moderate budget activity than typical and expressed concern that AI-related disruption is significantly depressing software company multiples. Consequently, Mizuho cited this widespread valuation compression as the primary driver for the lowered price target.

A day before that, Truist lowered its price target for Rapid7 to $14 from $18 with a Hold rating as part of a Q4 2025 cybersecurity sector preview. Although the firm expects strong Q4 results and continued momentum in Security and AI initiatives, it anticipates that management teams will issue conservative guidance for 2026 to facilitate a future beat-and-raise cadence. Despite steady demand from IT budget holders, Truist noted that software equities face significant headwinds.

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Rapid7 Inc. (NASDAQ:RPD) provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names.

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Disclosure: None. This article is originally published at Insider Monkey.