Narrative Update on Tenable Holdings
Analysts have lowered their price target for Tenable Holdings from $44 to $40, citing updates to company forecasts and a more cautious outlook in advance of upcoming earnings.
Analyst Commentary
Analyst sentiment regarding Tenable Holdings has become more nuanced ahead of the company's earnings report, as reflected in updated forecasts and a revised price target.
Bullish Takeaways
- Bullish analysts maintain an Overweight rating and highlight confidence in Tenable's underlying fundamentals, even with a lower price target.
- Expectations remain positive for the company's long-term growth prospects in the cybersecurity market, supported by ongoing investments in product development.
- Valuation adjustments are viewed as a reflection of near-term caution but do not indicate a shift in the overall positive outlook toward execution and business momentum.
Bearish Takeaways
- Some analysts have lowered their price targets in response to updated company forecasts, signaling more cautious sentiment ahead of earnings.
- Short-term headwinds, such as uncertainty in enterprise spending and potential impact on revenue growth, are contributing to a more conservative approach.
- Execution risks remain a concern, particularly regarding achieving guidance and meeting investor expectations in the current environment.
What's in the News
- Tenable Holdings issued new earnings guidance for the fourth quarter and full year 2025. The company projects annual revenue between $988 million and $992 million, with a net loss per diluted share expected between $0.34 and $0.31. (Company Guidance)
- The company completed its share buyback program announced in November 2023, repurchasing a total of 8,285,013 shares for $299.94 million. This represents 6.92% of outstanding shares. (Buyback Update)
- Matthew Brown was appointed as Chief Financial Officer, effective August 21, 2025. He brings over two decades of finance leadership experience in the technology sector. (Executive Changes)
Valuation Changes
- The Fair Value Estimate has decreased slightly from $38.79 to $37.89 per share.
- The Discount Rate has edged up from 8.76% to 8.80%.
- The Revenue Growth Forecast has been lowered from 8.76% to 8.48%.
- The Net Profit Margin projection has improved from 2.87% to 3.28%.
- The Future P/E Ratio estimate has declined notably from 176.54x to 140.07x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.