Analyst Roger Boyd of UBS maintained a Hold rating on Qualys, boosting the price target to $150.00.
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Roger Boyd has given his Hold rating due to a combination of factors influencing Qualys’s current and future performance. The company has shown positive revenue growth for the third consecutive quarter, with significant margin improvements. However, the outlook for the fourth quarter is mixed, with revenue growth slightly ahead of consensus but a slowdown in current billings growth compared to the third quarter. This suggests some uncertainty in the company’s ability to sustain its growth momentum.
Additionally, while Qualys is making progress with its ETM and ROC products, there are concerns about the variability in new logo growth and a net retention rate that remains in the low-single-digit range. Despite international growth and channel momentum, the upsell environment is challenging, and the company’s valuation at 16x EV/FCF for CY26E suggests limited upside potential. These factors contribute to the Hold rating, as they indicate a balanced risk-reward scenario for investors at this time.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $145.00 price target.