Truist Securities lowered its price target for Rapid7 (NASDAQ:RPD) to $8.00 from $14.00 on Wednesday and kept a Hold rating on the cybersecurity provider's shares. The new target sits just above Rapid7's most recent market price of $7.82, with the stock trading near a 52-week low of $10.20.
The price-target cut followed Rapid7's fourth-quarter 2025 earnings release, which Truist characterized as mixed and roughly in line with its estimates. After the announcement, Rapid7's shares fell about 21% in after-hours trading. Despite the selloff, InvestingPro data cited by Truist indicates the company posted a diluted EPS of $0.36 over the last twelve months, and technical indicators such as the RSI suggest the shares have entered oversold territory.
Truist's analysis highlights several elements of concern in the report. Revenue guidance for the upcoming period came in below consensus expectations, and management did not provide annual recurring revenue guidance for fiscal 2026, according to the research firm. Those omissions contributed to a cautious tone from analysts.
The research note also detailed operational headwinds. Rapid7's management announced organizational changes and strategic pivots aimed at re-accelerating growth, but Truist pointed to deceleration within the company's detection and response business. Growth in that segment reportedly slowed from "mid-teens" in the third quarter to "high single-digits." Truist additionally flagged ongoing difficulties converting core vulnerability management customers onto Rapid7's Exposure Management platform, and said it would remain cautious until there are clear signs of a growth inflection.
Other analyst activity followed Rapid7's conservative outlook for 2026. Scotiabank lowered its price target to $9 from $18 and maintained a Sector Perform rating. JP Morgan dropped its target to $11 from $20. Canaccord Genuity moved the stock from Buy to Hold and reduced its price target to $10 from $27. These actions underscore a broadly cautious view among analysts after the guidance shifted investor expectations.
Separately noted in recent market reports, Saia reported fourth-quarter 2025 earnings per share of $1.77, below Evercore ISI's forecast of $1.95 and the average Street estimate of $1.90. Saia's revenue exceeded expectations, driven by improved volumes and yield, though EBIT and the operating ratio missed projections in part due to higher insurance costs. Evercore ISI reacted by raising its price target for Saia to $435 from $367 while keeping an "In Line" rating.
For Rapid7 specifically, the company posted fourth-quarter 2025 EPS of $0.44, ahead of the expected $0.41, and revenue of $217.39 million versus a forecast of $215.03 million. Even with those upside results for the quarter, the conservative 2026 outlook prompted the wave of analyst adjustments and contributed to near-term share price pressure.
Contextual takeaway: Analysts trimmed valuations and expressed guarded sentiment after Rapid7’s Q4 print, citing below-consensus guidance, slowing growth in key business lines, and conversion challenges as reasons to await clearer signs of a sustained growth inflection before upgrading conviction.