Cybersecurity company, Tenable Holdings (NASDAQ: TENB) surged in morning trading at the time of writing on Wednesday after top-rated Wedbush analyst Daniel Ives was left impressed with the company’s Q2 results and called them “robust.” The analyst reiterated a Buy rating on the stock and raised the price target to $55 from $45, implying an upside potential of 25.6% at current levels.
In the second quarter, Tenable reported adjusted earnings of $0.22 per share, compared to $0.05 in the same period last year and above Street estimates of $0.13 per share. The company’s revenues grew 19% year-over-year to $195 million in Q2, beating analysts’ estimates of $190.26 million.
Looking forward, the company now expects Q3 revenues in the range of $197 million to $199 million while adjusted earnings are likely to be between $0.18 and $0.19 per share. In FY23, Tenable has projected revenues in the range of $783 million to $791 million with adjusted earnings forecasted to be between $0.65 and $0.69 per share.
Ives commented on the better-than-expected Q2 results, “Overall, this was a major inflection point quarter for the Tenable story with momentum heading into [the second-half of 2023] and 2024.” The analyst also stated that the company saw “accelerated momentum across its entire portfolio despite a difficult macro,” with Tenable’s cloud products, including Tenable One having an excess of 20% new bookings in the quarter.
Overall, analysts remain bullish about TENB stock with a Strong Buy consensus rating based on eight Buys and two Holds.
