Rubrik Is A Cybersecurity Standout (Rating Upgrade)

Rubrik is upgraded to a buy, reflecting expanding market opportunity, robust profitability, and differentiated agentic AI cybersecurity solutions. Q1 revenues grew 39% YoY, with normalized growth at 43%, strong gross margin expansion to 83%, and NRR at 120%. FY2027 guidance shows decelerating top-line growth but improving profitability, with ARR contribution margin projected to rise from 12% to 14%. Valuation at 11x forward P/S is now reasonable, supporting long-term upside as RBRK integrates with leading AI platforms.

A little less than a year ago, I initiated coverage on Rubrik, Inc. ( RBRK ) with a hold rating. While it was clear that the company offered truly innovative cybersecurity solutions, I viewed the valuation as too steep. Hence, my cautiousness. After that

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