Analyst Kingsley Crane of Canaccord Genuity maintained a Buy rating on Qualys (QLYS – Research Report), reducing the price target to $163.00.
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Kingsley Crane’s rating is based on the overall positive trajectory of Qualys, despite some short-term challenges. The company demonstrated strong performance in Q4 with a 10% year-over-year revenue increase and maintained a stable net retention rate, which suggests solid customer loyalty. Crane acknowledges the current softness in demand within the vulnerability management sector but notes Qualys’ effective navigation through this period.
Furthermore, Qualys is capitalizing on growth opportunities through channel partnerships and expanding its product offerings, such as CNAPP capabilities, TruRisk, and TotalAI, which are expected to drive future growth. The company’s strategic focus on the Federal market, bolstered by upcoming FedRAMP High certifications, presents additional opportunities. While the FY25 profit guidance is lower than expected, the contemplated investments are seen as strategic moves to enhance long-term growth, justifying the Buy rating with a revised price target of $163.
QLYS’s price has also changed slightly for the past six months – from $137.100 to $140.710, which is a 2.63% increase.