Qualys cut to Hold at Needham due to ‘soft’ field checks, disappointing Q3

Needham analyst Alex Henderson downgraded Qualys to Hold from Buy. The analyst says he is moving to the sidelines as his recent field checks into the company’s business were "soft". Henderson also cites Qualys’ disappointing Q3, with "weak" billings growth impacted by macro conditions as well as pressure from currency headwinds and pricing from traditional VM players. Conditions are still eroding, and while the management is taking actions to reduce expenses, growth is likely to decelerate to low teens, the analyst tells investors in a research note.