Rapid7 (NASDAQ: RPD) shares fell 6.12% after Barclays downgraded to Underweight from Equalweight

Rapid7 (NASDAQ: RPD) shares fell 6.1184% in pre-market trading on Jan. 5, 2026, following a significant downgrade from Barclays. The firm lowered its rating to "Underweight" from "Equalweight" and cut the price target to $15 from $18, citing slower growth in the vulnerability management sector and structural challenges in Rapid7's revenue mix.

Barclays analyst Saket Kalia highlighted three key concerns: declining prioritization of vulnerability management by CIOs, a revenue structure heavily reliant on legacy products and slower-growing segments, and limited near-term catalysts for a stock re-rating. The firm noted that approximately 45% of Rapid7’s annual recurring revenue comes from vulnerability management, with Detection & Response accounting for a similar share, while legacy offerings like Metasploit contribute the remaining 10%.

The downgrade reflects skepticism about Rapid7’s ability to pivot quickly toward higher-growth Detection & Response solutions, despite a low valuation. Analysts also tempered expectations around potential M&A activity, emphasizing that meaningful re-rating would depend on a gradual shift in product mix rather than immediate industry events. The move underscores broader investor caution in the cybersecurity sector amid shifting IT priorities.