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On Thursday, TD Cowen maintained its Buy rating and $55.00 price target for Tenable (NASDAQ:TENB), a cybersecurity company. Tenable recently reported third-quarter results for the fiscal year 2024, which exceeded Street expectations. The company's revenue saw a year-over-year increase of 13%, and it provided an improved guidance for future performance.
The growth was primarily attributed to Tenable One, the company's platform driven by Cloud Security and Identity services. Strong performance was also noted within the Public Sector and mid-market segments. Despite challenges in the market, such as longer sales cycles and increased deal scrutiny, Tenable has reported a solid pipeline build.
The Virtual Machine (VM) market, which had seen some instability, appears to have stabilized, contributing to the company's positive outlook. Tenable's recent performance and prospects have led TD Cowen to reiterate its positive stance on the company's stock with a sustained price target of $55.00.
Tenable's success in the third quarter and the firm's confidence in its continued growth reflect the company's ability to navigate a complex and demanding cybersecurity landscape. The maintained Buy rating indicates that TD Cowen remains optimistic about Tenable's market position and financial health.
In other recent news, Tenable Holdings (NASDAQ:TENB) Inc., a cybersecurity company, has been the subject of several financial analyses following its recent earnings report.
Barclays maintained its Equal Weight rating on Tenable, emphasizing the company's Calculated Current Billings (CCB) of approximately $246 million, representing a year-over-year growth of 9-10%. The slower growth was attributed to decreased Vulnerability Management spending in North America. Barclays estimates an 8-9% year-over-year growth in CCB for FY25, which is below market expectations.
Jefferies initiated coverage on Tenable with a Hold rating, expecting a three-year revenue compound annual growth rate of 10.5% from 2023 to 2026. Needham maintained a Buy rating but reduced its price target to $50, citing growth and net expansion rates.
Scotiabank adjusted its target to $44, noting a slowdown in the company's core business demand. Piper Sandler lowered its price target from $60 to $55, maintaining an Overweight rating, while Canaccord Genuity reduced its price target from $57 to $53, maintaining a Buy rating.
Tenable's strategic products, such as Tenable One and its cloud offerings, continue to show positive momentum. The company's Q2 2024 revenue reached $221.2 million, a 13% increase year-over-year, with recurring revenue accounting for 96% of the total.
These are among the recent developments for Tenable.
InvestingPro Insights
Tenable's recent performance aligns with several key insights from InvestingPro. The company's revenue growth of 14.62% over the last twelve months supports TD Cowen's positive outlook. Additionally, Tenable's impressive gross profit margin of 77.43% underscores its efficiency in core operations, which is crucial in the competitive cybersecurity market.
InvestingPro Tips highlight that 12 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Tenable's future performance. This aligns with the company's improved guidance mentioned in the article. Another InvestingPro Tip notes that Tenable operates with a moderate level of debt, which could provide financial flexibility as it continues to expand its market presence.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Tenable, providing a deeper understanding of the company's financial health and market position.
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