Kingsley Crane, an analyst from Canaccord Genuity, maintained the Buy rating on Tenable Holdings (TENB – Research Report). The associated price target was lowered to $45.00.
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Kingsley Crane’s rating is based on Tenable Holdings’ robust performance in the first quarter, where the company exceeded all guided metrics despite a challenging macroeconomic environment. The company’s current calculated billings grew by 9% year-over-year, and its revenue increased by 11%, both surpassing expectations. This growth was driven by the strength in Tenable One and Cloud Security, showcasing the company’s ability to maintain momentum in key areas.
Furthermore, Tenable’s profitability metrics were impressive, with gross margins reaching 82% and non-GAAP operating margins beating expectations. The company’s strong free cash flow and strategic positioning in the expanding market of Exposure Management, along with its capabilities in cloud security, provide a solid foundation for future growth. Despite some caution regarding federal revenue, Crane believes that Tenable’s valuation remains attractive, making it a compelling buy opportunity with potential for both growth and improved margins.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $45.00 price target.
TENB’s price has also changed moderately for the past six months – from $41.800 to $33.680, which is a -19.43% drop .