Rapid7 (NASDAQ: RPD) fell 6.12% after Barclays downgraded price target and outlook.

Rapid7 (NASDAQ: RPD) fell 6.1184% in pre-market trading on January 5, 2026, as investors reacted to a significant downgrade from Barclays, which cut its price target and outlook for the cybersecurity firm.

Barclays downgraded Rapid7 from Equalweight to Underweight, reducing its price target to $15 from $18. The move highlights concerns over slowing growth in the vulnerability management market, a core segment for Rapid7, with another 45% from Detection & Response (D&R) services. While Barclays acknowledged potential for growth in D&R, it cautioned that a transition would take time and would not happen overnight.

Recent earnings reports added to the pressure, as Rapid7’s ARR growth slowed to 3.1% year-over-last, falling short of expectations. Analysts at Stifel, DA Davidson, and Piper Sandler also adjusted their price targets downward, reflecting broader skepticism about the company’s ability to sustain momentum. Despite some strong performance in the Detection and Response segment, the persistent underperformance in ARR has drawn cautious outlooks from multiple firms.

Barclays cited a structural shift in the cybersecurity landscape, where growth in vulnerability management has plateaued, and market saturation is becoming more evident. Rapid7’s reliance on this segment makes it vulnerable to external market forces and reduced pricing power. Analysts have also pointed to a lack of clear differentiation in Rapid7’s offerings compared to its peers in the cybersecurity space, which has led to cautious sentiment.

Looking ahead, Rapid7 will need to demonstrate a clear and successful pivot into high-growth areas such as AI-driven threat detection, cloud-native security solutions, and expanded enterprise offerings. Investors are likely to remain on the sidelines until the company can deliver stronger financial performance and provide a more compelling long-term vision to justify its valuation.