Needham raises Tenable stock price target to $42 on strong Q2 results

Investing.com - Needham has raised its price target on Tenable (NASDAQ:TENB) to $42.00 from $35.00 while maintaining a Buy rating following the cybersecurity firm’s second-quarter performance. According to InvestingPro data, this target aligns with the broader analyst consensus, as the stock currently trades below its Fair Value with analyst targets ranging from $32 to $45.

Tenable outperformed expectations for the second quarter of 2025 and raised its full-year guidance for both Cloud Consumption Billing (CCB) and Revenue, according to Needham’s analysis released Thursday. The company maintains impressive gross profit margins of 78% and has achieved revenue growth of nearly 12% over the last twelve months.

The company reported better-than-expected performance in its U.S. Public Sector business, securing two competitive wins for seven-figure contracts in the State, Local, and Education (SLED) market, and expressed increased confidence in large U.S. Federal renewals during the second half of 2025.

Despite ongoing headwinds from constrained U.S. Federal spending affecting New & Expansion opportunities, Tenable’s management remains cautiously optimistic about long-term prospects in this sector.

The research firm also highlighted management’s positive outlook on Tenable’s Exposure Solutions, which now represents more than 20% of Total (EPA:TTEF) Sales and is growing at approximately 20% year-over-year. With a market capitalization of $3.9 billion and expectations for net income growth this year, Tenable demonstrates potential for continued expansion in this segment.

In other recent news, Tenable Holdings Inc . reported impressive second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.34, which was higher than the anticipated $0.30. Additionally, Tenable’s revenue reached $247.3 million, exceeding the forecasted $242.15 million. These results highlight the company’s strong performance in the quarter. Following these announcements, Scotiabank (TSX:BNS) adjusted its price target for Tenable’s stock, raising it from $30.00 to $37.00, while maintaining a Sector Perform rating. This adjustment was influenced by Tenable’s current billings aligning with market expectations and the company’s raised guidance for 2025. These developments reflect positively on Tenable’s outlook, as recognized by Scotiabank.

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