The accelerated pace of digital transformation, the introduction of hybrid working models, and the migration of companies’ their assets and workloads to the cloud, have elevated the demand for products and solutions that reduce cybersecurity risks.
Tenable Holdings (TENB) is one of those many companies that benefit from this shift towards digital technologies, as reflected through its latest financial and operating performance.
Tenable Holdings provides cloud-based software and solutions that reduce cyber risks. Thanks to the secular industry trends and increased spending to reduce cybersecurity threats, Tenable continues to land six-figure deals, while its customer base is expanding rapidly.
During the most recent quarter, Tenable acquired 67 new six-figure customers, which is encouraging. Furthermore, its key KPIs, including calculated current billings, net customer additions, large deals, and revenue growth rate, all improved.
Thanks to the improving fundamentals, Tenable revised its 2021 sales and earnings outlook upwards.
While Tenable Holdings continues to deliver strong financial numbers, its stock is down approximately 14% since the beginning of the year. (See Tenable Holdings stock charts on TipRanks)
With continued momentum in its business and strong financial performances, will Tenable Holdings stock return to green?
Needham analyst Mike Cikos thinks so. Cikos remains upbeat on Tenable’s prospects and maintains a Buy rating on the stock. In response to Tenable’s Q2 performance and guidance raise, Cikos said that the raised outlook “punctuates growing demand.”
He added that the “2Q beat was further bolstered by a raise to guidance for the remainder of CY21 as management expects trends to continue.”
Cikos expects Tenable to land a record number of six-figure deals in the future. Moreover, he expects the acquisition of Alsid, a cybersecurity company, to accelerate Tenable’s growth by expanding its addressable market, providing cross-selling opportunities and bringing in more clients.
Cikos raised his price target on the stock to $58 (28.8% upside potential) from $51.
On TipRanks, Tenable Holdings stock has received 3 positive analyst reviews, for a unanimous Strong Buy consensus rating. The average Tenable Holdings price target of $58 implies 28.8% upside potential to current levels.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
