DA Davidson has started coverage of Rubrik with a Buy recommendation and a $65 price objective, arguing that the stock's pullback presents an attractive entry point into a rapidly growing cyber resilience vendor. The firm noted Rubrik has fallen by more than 30% so far this year and reminded investors the company will report fiscal fourth-quarter results on March 12.
The broker acknowledged that sentiment around traditional backup and recovery has soured amid worries about intensifying competition and pressure on pricing. Despite those headwinds, DA Davidson contends a larger opportunity remains largely untapped in the cloud and SaaS segment. The firm estimated that this addressable market, which it places at roughly $2 billion to $3 billion today, could expand to more than $10 billion over time.
DA Davidson described Rubrik as a leader in cyber resilience, citing competition that includes Commvault and private firms such as Cohesity and Veeam. The brokerage said Rubrik is well positioned to continue displacing legacy workloads while also capturing a meaningful portion of the expanding cloud and SaaS opportunity.
Beyond core backup and recovery, DA Davidson pointed to Rubrik's moves into Data Security Posture Management following its 2023 acquisition of Laminar. The report noted that although Veeam's acquisition of Securiti AI in late 2025 strengthened a rival's offering, Rubrik remains one of the emerging leaders in the DSPM segment. DA Davidson estimated that market at $1 billion to $2 billion, growing at an annualized pace of 20% to 30%.
The brokerage also highlighted Rubrik's newer Identity Resilience products and said security-related offerings now account for more than 40% of subscription net revenue retention. That mix of security products, DA Davidson argued, is contributing to larger customer contract wins.
DA Davidson pointed to Rubrik Agent Cloud, an AI operations platform launched in late 2025 and currently in early access, as another potential future growth driver, while acknowledging it is early stage.
On margins, the firm observed that operating profitability remains weak relative to peers for a company of Rubrik's scale. Even so, DA Davidson expects annual recurring revenue growth of 20% or higher to continue for at least the next several years, forecasting about 25% ARR growth in fiscal 2027, which it said is in line with consensus.
Overall, the brokerage's initiation implies confidence in Rubrik's position across backup, cloud and security domains, while flagging near-term margin pressure and competitive dynamics as constraints investors should monitor.