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Investing.com - DA Davidson raised its price target on Qualys (NASDAQ:QLYS) to $135.00 from $130.00 on Wednesday, while maintaining a Neutral rating on the cybersecurity firm’s stock. The company, currently valued at $4.74 billion, maintains strong financial health according to InvestingPro analysis, with an impressive gross profit margin of 81.79%.
The adjustment follows Qualys’ solid second-quarter results, which showed revenue upside and a significant EBITDA beat. The company reported current calculated billings (CCB) growth of 8% year-over-year, improving from 7% in the previous quarter. With a P/E ratio of 26.38x and overall revenue growth of 9.14%, InvestingPro subscribers can access 8 additional key insights about Qualys’s growth potential and valuation metrics.
Trailing twelve-month CCB growth reached 11% year-over-year, compared to 8% in the prior quarter. Qualys has updated its guidance for calendar year 2025, now implying 8-9% year-over-year revenue growth, up from the previous 7-8% projection.
Despite the improved outlook, DA Davidson noted that revenue growth is still expected to slow to approximately 6-7% year-over-year in Q4. The firm also highlighted that CCB growth is projected at just 5-7% year-over-year in the second half of 2025, citing challenges with new customer acquisition and a more cautious outlook on renewals and expansions.
While DA Davidson expects continued earnings per share and EBITDA upside, the firm considers Qualys shares fully valued given the current growth outlook, leading to its maintained Neutral stance.
In other recent news, Qualys Inc . reported robust financial results for the second quarter of 2025, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of $1.68, surpassing the forecasted $1.47, marking a 14.29% positive surprise. Revenue also outperformed projections, reaching $164.1 million compared to the anticipated $161.24 million. Following these results, Jefferies raised its price target for Qualys to $150.00 from $140.00, while maintaining a Hold rating on the stock. Jefferies noted that the second-quarter results were "better than feared," as Qualys exceeded revenue expectations by $2.9 million. These developments highlight the company’s solid performance in the recent quarter.
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