Scotiabank raises Tenable stock price target to $37 on improved outlook

Investing.com - Scotiabank (TSX:BNS) raised its price target on Tenable (NASDAQ:TENB) to $37.00 from $30.00 on Thursday, while maintaining a Sector Perform rating on the cybersecurity firm’s stock. According to InvestingPro data, Tenable, currently trading at $32.24 with a market cap of $3.94 billion, shows signs of being slightly undervalued based on its Fair Value analysis.

The price target increase follows Tenable’s second-quarter results, which showed current billings in line with Street expectations, while the company raised its guidance for 2025. The company maintains impressive gross profit margins of 78% and has achieved revenue growth of 11.79% over the last twelve months. InvestingPro analysis reveals 10+ additional key metrics and insights available for subscribers.

Scotiabank noted that Tenable’s improved outlook stems from better-than-internally-expected second-quarter performance and increased management confidence in the U.S. federal vertical heading into the second half of 2025.

The firm observed a positive shift in management tone after several quarters of caution, describing the after-hours stock performance as a "nice relief rally" against the backdrop of TENB shares being down 18% year-to-date ahead of the earnings report.

Despite the improved outlook, Scotiabank remains on the sidelines, stating that for shares to sustainably re-rate, Tenable would need either a plateauing in current billings growth or improved profitability, while noting that recent checks indicate exposure management is not currently a top priority in an environment with tight budgets.

In other recent news, Tenable Holdings Inc . reported earnings for the second quarter of 2025 that exceeded analysts’ expectations. The company’s earnings per share (EPS) came in at $0.34, surpassing the forecast of $0.30 by 13.33%. Revenue also topped predictions, reaching $247.3 million compared to the expected $242.15 million, marking a 2.13% increase. These results highlight Tenable’s strong financial performance during this period. The earnings announcement follows a minor increase in the company’s stock during aftermarket trading. Investors may find these developments noteworthy as they reflect Tenable’s growth trajectory. The company’s ability to outperform forecasts could influence future analyst ratings and investor interest.

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