Needham analyst Mike Cikos has maintained their neutral stance on QLYS stock, giving a Hold rating today.
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Mike Cikos has given his Hold rating due to a combination of factors that reflect both strengths and uncertainties in Qualys’s performance. The company showed a positive trend with an 11.4% year-over-year growth in current billings, indicating the effectiveness of its ROC strategy. However, despite this growth, the net dollar retention rate remained steady at 104%, which raises questions about the company’s ability to maintain or accelerate its growth in the future.
Additionally, while there has been success in converting proof of concepts into commercial deployments, the cautious tone from management regarding Enterprise TruRisk Management suggests a need for further validation. The introduction of the QFlex pricing model and certification of quality mROC partners are positive steps, yet the overall competitive landscape and the company’s relative performance to its peers necessitate a cautious outlook. These factors combined lead to a Hold rating, reflecting a balanced view of potential opportunities and risks.
In another report released today, UBS also maintained a Hold rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 97 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 QLYS in relation to earlier this year.