On Friday, Stifel analysts revised their stance on Tenable stock, downgrading it from Buy to Hold and adjusting the price target to $45 from the previous $46. Tenable, a cybersecurity company listed on NASDAQ under the ticker NASDAQ:TENB, has been recognized for its early success with up-selling and cross-selling its Tenable One platform and for setting what the firm considers a conservative forecast for CY25 with high-single digit year-over-year (Y/Y) CCB growth.
Stifel's analysts pointed out that although Tenable is a solid asset with potential to increase margins and has an interesting opportunity within the operational technology (OT) cybersecurity sector, they have adopted a cautious approach towards the Vulnerability Management (VM) market. According to their market checks, VM seems to be a relatively lower priority in the cybersecurity space.
The firm acknowledged that Tenable's valuation is not demanding, citing an approximate 4.5 times CY26E EV/revenue. Moreover, they noted that Tenable and its VM competitors could be potential acquisition targets. Despite these factors, Stifel awaits further signs of execution progress and a shift in the prioritization of VM in the cybersecurity industry before adopting a more constructive view on the company's stock.
Stifel's downgrade comes amidst a broader assessment of the VM market, where the firm is looking for more evidence of Tenable's operational execution and market prioritization to reassess their position. As of now, the hold rating reflects a neutral perspective on Tenable's near-term prospects in the market.
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