Investing.com -- Mizuho downgraded shares of Rubrik to Neutral from Outperform in a note to clients on Thursday.

The firm pointed to valuation concerns after a strong rally that has pushed the stock to all-time highs.

“It’s been a great ride, but our stop is here,” Mizuho analysts wrote. They raised the price target on Rubrik to $86 from $75 but said the recent surge in the stock has left little room for further upside. Rubrik shares closed Wednesday at $84.61.

Since its initial public offering in 2024, Rubrik has soared 165%, including a 29% gain so far in 2025.

While Mizuho remains optimistic about the company’s underlying business, the firm now believes the stock is “fairly valued.”

Mizuho credited Rubrik’s success to its strength in data security and ransomware protection.

“We firmly believe that RBRK’s intense focus on protecting and operationalizing data, along with best-in-class ransomware defenses, has enabled it to significantly separate from most legacy and next-gen vendors in this space,” the analysts wrote.

They also pointed to continued growth opportunities, including Rubrik’s expansion into protecting more SaaS applications and data sources. Still, despite these tailwinds, the sharp rise in the stock has prompted a more cautious view.

The firm emphasized that the move was valuation-driven rather than a change in view on Rubrik’s fundamentals. However, they stated that they expect the company to grow ARR modestly faster than peers.

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