On Thursday, an analyst at DA Davidson adjusted the price target for Tenable Holdings Inc . (NASDAQ: NASDAQ:TENB) shares, a cybersecurity company, to $56.00 from the previous $61.00 while retaining a Buy rating on the stock.
This revision follows Tenable's first-quarter results which were deemed solid, especially regarding operating margins that were approximately 4% ahead of consensus estimates. The company's revenue and Calculated Current Billings (CCB) saw a more modest rise.
The cybersecurity firm's guidance for the calendar year 2024 has been slightly increased for both revenue and CCB, now suggesting an 11-12% year-over-year organic CCB growth compared to the previously estimated 10-12%. The upward revision was more significant in terms of operating profit.
Tenable's new product, Tenable One, achieved a record high, constituting 26% of new enterprise sales, up from 22% in the previous quarter. The company's Exposure Solutions also continued to represent about half of the new enterprise sales.
DA Davidson's outlook on Tenable remains positive, as indicated by the maintained Buy rating. The analyst's comment highlighted the competitive environment in the core Vulnerability Management (VM) market, which continues to be favorable for Tenable. Despite the reduction in the price target, the analyst's stance suggests confidence in the company's performance and market position.
InvestingPro Insights
With the recent price target adjustment from DA Davidson, investors might be seeking additional insights into Tenable Holdings Inc. (NASDAQ: TENB). According to InvestingPro data, Tenable has a market capitalization of $5.21 billion and has experienced a revenue growth of 15.88% over the last twelve months as of Q1 2024. The company also boasts an impressive gross profit margin of 77.36% for the same period. These figures underscore the company's solid quarterly performance mentioned by the analyst.
Furthermore, an InvestingPro Tip highlights Tenable's expected net income growth this year, aligning with the analyst's optimistic outlook. The company's gross profit margins are also considered impressive, which could be a key factor in driving future profitability. While Tenable operates with a moderate level of debt, it's worth noting that the company is trading at a high EBITDA valuation multiple and a high Price / Book multiple of 14.9, suggesting a premium market valuation.
Investors interested in a deeper analysis can find additional InvestingPro Tips for Tenable Holdings, including predictions on profitability and price trends, by visiting https://www.investing.com/pro/TENB. For those looking to leverage these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 8 more InvestingPro Tips available, offering a comprehensive view of Tenable's financial health and market position.
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