Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on QLYS stock, giving a Hold rating on April 29.
Shrenik Kothari has given his Hold rating due to a combination of factors affecting Qualys. The company reported a mixed performance in the first quarter of FY25, with revenue, EBITDA, and EPS exceeding expectations, but facing challenges in upselling and customer contract bookings due to macroeconomic pressures. The guidance for the year was slightly adjusted to reflect these challenges, with a cautious outlook on new business growth amid longer sales cycles and increased budget scrutiny.
While Qualys is seeing some early traction with new products like TotalCloud and TotalAI, these have not yet significantly contributed to growth. The core business, including Vulnerability Management Detection and Response (VMDR), is under pressure, limiting potential upside. Despite these challenges, Qualys remains a crucial player in the cybersecurity segment, which is considered more resilient within IT budgets. The company’s strategic focus on high-impact initiatives and federal market expansion is noted, but the overall macroeconomic environment and its impact on sales cycles and budget allocations warrant a Hold rating.
In another report released on April 29, Jefferies also maintained a Hold rating on the stock with a $130.00 price target.