Qualys Receives a Hold from Pacific Crest

By Ryan Adsit

Pacific Crest analyst Rob Owens reiterated a Hold rating on Qualys (NASDAQ: QLYS) yesterday. The company’s shares closed yesterday at $36.05, close to its 52-week high of $39.74.

Owens commented:

“We remain neutral on shares Another good quarter for Qualys. Results modestly topped revenue forecast as solid market demand for the company’s cloud-based vulnerability and compliance solutions remained solid. Billings of $57.6 million topped our expectation by $2.3 million with the upside equally split between short-term and long-term deferred. Adjusted growth (for FX hit and inorganic MSSP contribution) was roughly 19.5%, or 60 basis points below reported results. Strong billings growth and a lower-than-forecast DSO meaningfully contributed to FCF outperformance in the quarter relative to expectations. When will new solutions drive inflection? The company highlighted its Vegas user conference from a few weeks ago, with customer optimism around the long- term vision of Qualys and its technical differentiation with additional incremental solutions to be delivered in the first half of next year.”

According to TipRanks.com, Owens is a 5-star analyst with an average return of 14.6% and a 56.3% success rate. Owens covers the Technology sector, focusing on stocks such as Palo Alto Networks, Barracuda Networks, and SecureWorks Corp.

Currently, the analyst consensus on Qualys is Moderate Buy and the average price target is $34, representing a -5.7% downside.

In a report released today, J.P. Morgan also upgraded the stock to Hold.

Qualys’ market cap is currently $1.28B and has a P/E ratio of 76.70. The company has a book value ratio of 5.6063.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2016, Howard A. Schmidt, a Director at QLYS sold 14,000 shares for a total of $456,960.

Qualys, Inc. provides cloud security and compliance solutions that enable organizations to identify security risks to information technology infrastructures, help protect information technology systems and applications from cyber attacks and achieve compliance with internal policies and external regulations. The company’s cloud solutions addresses the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external information technology infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed information technology assets. It provides solutions through a software-as-a-service model, primarily with renewable annual subscriptions. These subscriptions require customers to pay a fee in order to access the company’s cloud solutions. Qualys was founded on December 30, 1999 and is headquartered in Redwood City, CA.