In a report released today, Hamza Fodderwala from Morgan Stanley upgraded Tenable Holdings (TENB – Research Report) to a Buy, with a price target of $60.00.
Hamza Fodderwala has given his Buy rating due to a combination of factors that highlight Tenable Holdings’ strong market position and potential for increased profitability. Fodderwala recognizes Tenable as a category leader within its core market of Vulnerability Management, noting that the company’s stock is currently trading at a discount compared to its peers. Despite underperforming against other security-focused stocks in 2023, he sees a significant opportunity for Tenable’s shares to appreciate. This perspective is bolstered by the expectation of share gains, easing top-line comparisons, and cost optimization strategies that may lead to greater profitability than previously anticipated.
Additionally, Fodderwala is optimistic about Tenable’s future revenue growth, which is supported by the company’s status as a top share gainer in its market. He points to favorable dynamics, including a stable-to-improving demand environment and easier comparative metrics after a macroeconomic slowdown. Growth is further supported by the potential for increased sales of Tenable One, which offers notably higher average selling prices, and the company’s continued expansion into other areas. The analyst’s confidence in Tenable’s ability to maintain high revenue growth through 2025, combined with margin improvements, has led to an increased price target for the stock, reinforcing the Buy rating.
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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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