Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on QLYS stock, giving a Hold rating on October 21.
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Shrenik Kothari has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Qualys. The company posted a strong performance in the third quarter, with a 10% year-over-year revenue growth and a 49% EBITDA margin, surpassing expectations. However, despite these positive results, upsell conversion remains a challenge, and the company is still working on improving traction in its Enterprise TruRisk Management (ETM) and other platforms.
While there is potential for medium to long-term growth, as indicated by the raised revenue guidance for FY25 and the promising developments in the ETM platform, the immediate top-line acceleration may remain modest. The macroeconomic environment continues to pose challenges, with budget scrutiny affecting new business opportunities. These factors contribute to the Hold rating, as the company shows potential for future growth but faces short-term uncertainties.
In another report released on October 21, UBS also maintained a Hold rating on the stock with a $145.00 price target.