In a report released today, Shaul Eyal from TD Cowen maintained a Hold rating on Qualys, with a price target of $145.00.
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Shaul Eyal has given his Hold rating due to a combination of factors impacting Qualys’s current market position and future growth prospects. While the company is expected to report an earnings per share (EPS) beat for the third quarter of 2025, driven by lower capital expenditures and depreciation, there are concerns about the sustainability of this growth. The anticipated increase in revenue is largely attributed to channel sales, which may not be enough to signal a long-term growth inflection.
Furthermore, the competitive landscape is intensifying with new entrants like CrowdStrike and Palo Alto Networks making significant strides in the vulnerability management domain. This increased competition could pressure Qualys’s operating margins, potentially peaking in fiscal year 2025. Despite efforts to innovate and expand its product offerings, the immediate impact on bookings and revenue growth remains uncertain, justifying the Hold rating with a price target of $145.
According to TipRanks, Eyal is a top 100 analyst with an average return of 26.4% and a 69.22% success rate. Eyal covers the Technology sector, focusing on stocks such as Palo Alto Networks, Fortinet, and Okta.