Needham analyst Mike Cikos maintained a Buy rating on Tenable Holdings (TENB – Research Report) today and set a price target of $62.00.
Mike Cikos has given his Buy rating due to a combination of factors that indicate strong future profitability for Tenable Holdings. Despite a perceived downtick in the company’s Calculated Current Billings (CCB) growth, which has fallen below previously stated management expectations, there are several positive financial indicators that support Cikos’s optimistic outlook.
Specifically, Tenable Holdings is anticipated to experience significant operating margin expansion, exceeding 200 basis points to reach 17.3%, a figure that surpasses sell-side expectations. Additionally, the guidance for Unlevered Free Cash Flow (uFCF) is set to grow by 28% to $225 million at the midpoint. These factors, coupled with the adjusted uFCF target that aligns with management’s projections even after accounting for certain negative impacts, provide a solid foundation for Cikos’s Buy recommendation.
In another report released yesterday, Stephens also assigned a Buy rating to the stock with a $60.00 price target.
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Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TENB in relation to earlier this year.
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Tenable Holdings (TENB) Company Description:
Tenable Holdings, Inc. engages in the development of security software solutions. It offers Cyber Exposure which is a discipline for managing and measuring cybersecurity risk in the digital era. Its products include tenable.io, tenable.sc, and nessus professional. The firm delivers solutions in the field of application security, cloud security, compliance, energy, finance, healthcare, and retail. The company was founde by John C. Huffard, Jr. and Renaud M. Deraison in 2002 and is headquartered in Columbia, MD.
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