Rapid7 just downgraded at RBC Capital, here’s why

RBC Capital downgraded Rapid7 to Sector Perform from Outperform with a price target of $40, down from $50. The vulnerability management market will consolidate, which could put increased pressure on Rapid7, the analyst tells investors in a research note. The firm also believes the areas outside of vulnerability management that Rapid7 is targeting are “ultra-competitive. It believes the company’s go-to-market and product evolution strategy will take time to positively impact growth. As such, the stock is likely to remain range-bound for the medium-term, contends RBC.