Investors may not be familiar with this company, but it is in a red-hot industry and its shares have solid upside potential to the Goldman Sachs target. Rapid7 Inc. (NASDAQ: RPD) engages in the provision of cybersecurity analytics and automation services. Its products include its Insight platform, which offers InsightVM, InsightIDR, InsightAppSec and InsightConnect.
Rapid 7 is advancing security with visibility, analytics and automation delivered through its Insight cloud. Its solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks and automate routine tasks. Some 8,400 customers rely on Rapid7 technology, services and research to improve security outcomes and securely advance their organizations.
Analysts have noted that Rapid 7s’ portfolio of cloud security solutions helps address the need to improve infrastructure visibility, whether based on cloud-native development or traditional application architecture.
Rapid7 posted quarterly earnings that easily beat the Wall Street consensus estimates (a surprise of 133.33%) and were higher than a year ago. Last quarter, the company posted a smaller than expected per-share loss (a surprise of 57.14%).
The Goldman Sachs price target went from $114 to $130. The consensus target for Rapid7 stock is just $100.03, below the most recent close at $113.76 a share.
Commercial real estate has picked up again in a big way, and Simon Property Group Inc. (NYSE: SPG) is a very strong company for investors looking to play the industry. It invests in real estate markets across the globe. It engages in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.
Through its subsidiary partnership, it owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.
One key driver of growth will include the $1.0 billion or more of development/redevelopment planned over the next few years. The company also posted solid results with net income attributable to common stockholders coming in at $617.3 million, or $1.88 per diluted share, as compared to $254.2 million, or $0.83 per diluted share in 2020.
Results for the second quarter of 2021 include a noncash gain of $118.4 million, or $0.32 per diluted share, because of the reversal of a deferred tax liability associated with an international investment.
Investors in Simon Property Group stock receive a 4.48% distribution. Goldman Sachs raised its $148 price target to $163. The $138.71 consensus target is closer to Thursday’s close at $134.03, after a gain of over 4% on the day.
Four top companies are hitting on all cylinders, have earnings out of the way for the quarter and their stocks look poised to head higher the rest of 2021. With the seasonally weak time of the year almost upon us, it may make sense to buy partial positions and look to scale in more capital if we get a sell-off.