Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on QLYS stock, giving a Hold rating on August 6.
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Shrenik Kothari has given his Hold rating due to a combination of factors that highlight both the strengths and challenges facing Qualys. The company is strategically focused on addressing specific buyer pain-points in cybersecurity, with a strong emphasis on risk-first solutions and a high-margin profile. However, while the long-term positioning appears promising, the key growth catalysts, such as traction in the Risk Operations Center and Federal sectors, will require time to fully materialize.
Qualys is adapting to changing customer behaviors and macroeconomic conditions, where there is a shift towards demanding tangible ROI and outcomes. Their flexible pricing model and channel-led approach are positive steps towards growth, yet the full impact of these strategies is still unfolding. Additionally, while the Federal sector presents new opportunities post-FedRAMP certification, the timing of pipeline conversion remains uncertain. These factors contribute to the Hold rating as investors are advised to wait for clearer signs of traction.