UBS cuts Tenable stock price target to $47, maintains Buy rating

Wednesday’s trading session saw UBS analyst Roger Boyd adjust the price target on Tenable (NASDAQ:TENB) to $47.00, a decrease from the previous $55.00, while upholding a Buy rating on the stock. According to InvestingPro data, Tenable currently trades at $32.53, with analyst targets ranging from $30 to $53, suggesting significant potential upside based on consensus estimates. Boyd’s assessment anticipates a slightly positive outlook for Tenable’s first-quarter earnings, scheduled for release next week. Despite recognizing the general uncertainty in the demand environment and Tenable’s particular vulnerability due to its exposure to U.S. Federal agencies, Boyd notes the stock’s significant decline as a factor that may have already accounted for much of the negative sentiment.

Tenable’s shares have experienced a 30% drop since the beginning of February and a 12% fall since April 1, marking the second-worst performance among its cybersecurity peers. InvestingPro data confirms this challenging period, showing a year-to-date decline of 21.31% and revealing impressive gross profit margins of 77.82%. InvestingPro subscribers have access to 8 additional key insights about Tenable’s performance and outlook. Nevertheless, Tenable’s 2025 guidance suggests a 15% decrease in incremental current billings compared to 2024, which Boyd considers one of the most conservative projections within UBS’s coverage.

Boyd also pointed out that Tenable has provided the clearest indication among its peers that its CY25 guidance incorporates additional caution regarding U.S. Federal spending. This conservative stance may have been reflected in the stock’s recent performance. Furthermore, Boyd’s checks within the cybersecurity sector have generally returned positive results, with mixed to modestly positive feedback specifically on Tenable’s vulnerability management offerings.

Although UBS has slightly reduced its estimates for Tenable to account for the anticipated broader and potentially more uncertain guidance range, Boyd still finds the stock’s valuation appealing. With the shares trading at approximately 12 times CY26 enterprise value to free cash flow (EV/FCF), Boyd maintains that the current price presents an attractive buying opportunity for investors. For a comprehensive analysis of Tenable’s valuation and growth prospects, including detailed Fair Value estimates and financial health scores, explore the full Pro Research Report available exclusively on InvestingPro.

In other recent news, Tenable Holdings Inc . reported fourth quarter results that exceeded expectations, with adjusted earnings per share of $0.41, surpassing the analyst consensus of $0.34. The company’s revenue for the quarter reached $235.7 million, marking an 11% year-over-year increase and exceeding the projected $231.54 million. Despite these positive results, Tenable’s guidance for the first quarter and full year 2025 fell short of analyst estimates, with expected Q1 revenue between $232-234 million and full-year revenue of $971-981 million. In the realm of analyst actions, Stephens initiated coverage on Tenable with an Equal Weight rating and a price target of $42, while Cantor Fitzgerald offered a more favorable Overweight rating and a $50 price target. JPMorgan raised its price target for Tenable to $53, citing the company’s robust free cash flow outlook and recent performance surpassing growth and profitability expectations. Additionally, Tenable announced plans to acquire Vulcan Cyber Ltd. to enhance its exposure management platform capabilities. The company also noted the successful adoption of its Tenable One and Exposure Solution products, contributing to competitive wins among Fortune 500 companies. Despite the challenges in its core business, analysts remain optimistic about Tenable’s growth potential and financial efficiency.

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