Rubrik shares rise as BMO joins bull camp after recent pullback

Rubrik

06/06/2024 17:05

** Shares of Rubrik  RBRK.N , cybersecurity co backed by
Microsoft  MSFT.O , up 4.7% at $32.87 on Thurs after BMO
upgrades to "outperform" from "market perform"
    ** BMO points to shares losing ~14% since brokerage
initiated coverage (May 20), saying they now have more favorable
risk/reward
    ** AAR (annual recurring revenue) growth and FCF (free cash
flow) as percentage of ARR "will likely be the two most
important metrics for investors," BMO says in note to clients
ahead of Apr qtr report
    ** For the qtr, BMO projects 38% yr/yr subscription ARR
growth, or net new ARR of $27 mln
    ** BMO sticks with $40 PT, based on 8x EV/CY revenues
    ** RBRK slated to report fiscal Q1 2025 results on Tues,
June 11, after market close
    ** Now, all 14 brokerages covering RBRK are bullish with
median PT of $46, per LSEG
    ** Co went public on Apr 25 after its IPO priced at $32
    ** Its shares have traded as high as $40 (Apr 25) and as low
as $29.24 (May 31)

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))