Needham analyst Matt Dezort has maintained their neutral stance on QLYS stock, giving a Hold rating on February 7.
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Matt Dezort has given his Hold rating due to a combination of factors regarding Qualys’s performance and future outlook. Although the company posted a strong fourth-quarter performance, surpassing expectations in terms of revenue, current billings, EPS, and adjusted EBITDA, the guidance for the first quarter and the fiscal year 2025 was mixed. While revenue projections were in line with expectations, EPS and EBITDA were below consensus estimates.
Additional considerations include the stable net retention rate and expectations of flat net retention through 2025, indicating challenges in attracting new business. The recent departure of the Chief Revenue Officer also adds some uncertainty, despite the company’s plans to increase operational expenditures significantly to invest in channel and R&D. Furthermore, while potential opportunities may arise from the anticipated FedRAMP High certification in 2025, these have not been included in the current guidance. Therefore, Dezort has maintained a cautious stance with a Hold rating.
In another report released on February 7, Jefferies also maintained a Hold rating on the stock with a $145.00 price target.