Rubrik, Inc. (NYSE:RBRK) is without doubt one of the AI Shares on Market Radar. On December 19, Goldman Sachs reiterated its “Purchase” score on the inventory with a $120 worth goal. Agency analysts see a compelling entry level for the inventory pushed by sturdy ARR development and an enhancing FCF profile.
Discussing the latest pullback, the agency famous how stress on the shares aligns with Lightspeed’s in-kind distribution of over 3 million shares, alongside a broader selloff in excessive development safety software program.
“We reiterate our Purchase score and $120 Value Goal on Rubrik following a ~17% pullback within the inventory vs. post-F3Q earnings highs.”
The agency famous that Lightspeed entities nonetheless maintain an estimated 9-10 million shares, which is lower than 7% of the present public float and equal to roughly three days of common day by day buying and selling quantity.
The inventory has traded all the way down to barely above pre-F3Q ranges despite the fact that Rubrik delivered a sturdy beat-and-raise quarter. This means the market is at present undervaluing Rubrik’s regardless of sturdy fundamentals, creating a horny entry level.
“In our view, the market is at present discounting the corporate’s best-in-class mid-30s ARR development trajectory and inflecting FCF profile, buying and selling at ~11x EV/S (NTM) vs. high-growth safety and platform friends at 13x regardless of comparable or decrease ARR/FCF development. We view this disconnect — the place a inventory with a powerful elementary print is out there at a close to pre-earnings worth — as a compelling entry level.”
Rubrik Inc. (NYSE:RBRK) supplies knowledge safety options to people and companies worldwide.
Whereas we acknowledge the potential of RBRK as an funding, we imagine sure AI shares provide better upside potential and carry much less draw back danger. For those who’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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Disclosure: None.
