Reiterating Buy on Tenable: Durable Growth, Expanding Tenable One Adoption, and Attractive Valuation Support $45 Target

TD Cowen analyst Shaul Eyal reiterated a Buy rating on Tenable Holdings today and set a price target of $45.00.

Shaul Eyal has given his Buy rating due to a combination of factors, including expectations for continued solid customer additions and increasing traction of the Tenable One platform, even as near-term growth in current contract billings moderates. He views the shift toward annual payments on multi-year Tenable One contracts as a timing headwind for billings rather than a demand problem, noting that customers are still signing longer, more strategic agreements that support rising remaining performance obligations and longer average contract durations. Eyal also points to steady revenue growth, strong gross margins, and healthy free cash flow generation as indicators of a durable and profitable business model, despite some temporary margin pressure tied to recent acquisitions and expanded R&D investment.
At the same time, he sees meaningful upside from further Tenable One adoption, given that only a fraction of the company’s roughly 18,000 enterprise customers have migrated to the platform, which carries substantially higher margin potential. While he acknowledges intensifying competition from both established and newer entrants in the vulnerability management market, his updated forecasts still call for mid‑single‑digit to high‑single‑digit growth in key metrics and modest upside to EPS, supported by anticipated operating leverage. Taken together, these dynamics underpin his view that the company’s long‑term growth and profitability prospects remain attractive relative to its current valuation, justifying the reiterated Buy rating and $45 price target.

In another report released on January 20, Truist Financial also maintained a Buy rating on the stock with a $27.00 price target.