Rosenblatt lifts Rubrik stock rating to buy ahead of Q4 results

Investing.com -- Rosenblatt Securities upgraded Rubrik to "Buy" ahead of the company’s fiscal fourth-quarter earnings report on confidence in its growth trajectory, strong market position, and upside potential to its $77 price target. 

Brokerage said recent weakness in the stock was a buying opportunity.

Rubrik is set to report its Q4 and full-year fiscal 2025 results on March 13 after market close. Rosenblatt expects the data security firm to deliver total revenue of $232.5 million, representing a 33% year-over-year increase, with subscription revenue growing 40% to account for 94% of total sales.

The firm’s new target price implies a 43% upside from current levels, following a roughly 25% decline in Rubrik’s stock since Rosenblatt initiated coverage with a "Neutral" rating in December.

Despite the stock’s pullback, Rosenblatt maintained its growth forecast, citing Rubrik’s strong positioning in a growing total addressable market (TAM) and continued demand for cybersecurity and data management solutions.

Rubrik’s cloud revenue jumped 69% year-over-year, with 77% of total ARR coming from cloud subscriptions. The firm expects these trends to continue, driven by Rubrik’s flagship product, Rubrik Security Cloud (RSC), and a stable net revenue retention rate above 120%.

Rubrik recently announced Annapurna for Amazon (NASDAQ:AMZN) Bedrock, an API service integrated into its security cloud platform to help enterprises manage and retrieve data for AI applications.

Rosenblatt sees this expansion as a key growth opportunity, further embedding Rubrik’s solutions into enterprise data management strategies.

The firm values Rubrik at 8.7x enterprise value-to-sales on FY26 estimates, near the average for comparable high-growth enterprise software vendors, and sees potential for multiple expansion to 11x EV/S, supporting its upgraded outlook.