DA Davidson initiated coverage of Rubrik with a Buy rating and $65 price target, citing an attractive entry point after the data security company's shares declined more than 30% year-to-date. The brokerage highlighted Rubrik's position in the cyber resilience market and its potential to capitalize on the expanding cloud and SaaS backup segment.

While sentiment has turned negative due to concerns about competition and pricing pressure, DA Davidson argues the broader market opportunity could grow from roughly $2-3 billion today to over $10 billion. The firm views Rubrik as a leader competing with Commvault, Cohesity, and Veeam, with particular strength in Data Security Posture Management following its 2023 Laminar acquisition.

DA Davidson expects Rubrik to maintain 20%+ annual recurring revenue growth for several years, including approximately 25% growth in fiscal 2027. The brokerage also noted Rubrik's newer Identity Resilience offerings and said security products now account for over 40% of subscription net revenue retention, driving larger customer wins despite weak operating margins at the company's current scale.