Tenable slips as BTIG downgrades on worries over slowing core market (NASDAQ:TENB)

Tenable (NASDAQ:TENB) shares fell on Monday as BTIG downgraded the cybersecurity agency, noting its core vulnerability administration goal market appears to be slowing at a “faster-than-expected tempo.”

Analyst Grey Powell lowered his ranking on Tenable (TENB) shares to impartial from purchase, noting that whereas BTIG is bullish on the corporate’s strikes into new merchandise, it is probably not sufficient to spice up income.

“Whereas we stay bullish on a few of TENB’s new product initiatives, we don’t suppose they’re large enough to offset this core market deceleration,” Powell wrote in a word to shoppers.

Tenable (TENB) shares dropped greater than 3% to $32.84 in premarket buying and selling.

Powell lowered his billings development estimate to 17% year-over-year in 2023, down from 20% beforehand.

The analyst famous that Tenable (TENB) has benefited from some “high-profile” cybersecurity assaults over the previous 18 months, together with the Sunburst assault in late 2020 and Log4j late final yr, driving firms to spend on vulnerability administration choices. Nonetheless, after performing current channel checks, that development appears to be slowing for quite a lot of causes.

“Some argued that vulnerability administration is considerably commoditized,” Powell defined. “Others said that the VM practices at most organizations are extra mature as we speak with much less room for incremental enlargement. And nearly everybody highlighted a shift in focus to different applied sciences – like assault floor administration and [cloud security posture management].”

Late final month, Wedbush Securities stated Tenable (TENB) could be among the many beneficiaries of elevated spending by the U.S. authorities on cybersecurity.

Analysts are largely bullish on Tenable (TENB). It has a BUY ranking from Looking for Alpha authors, whereas Wall Avenue analysts price it a STRONG BUY. Conversely, Looking for Alpha’s quant system, which persistently beats the market, charges TENB a HOLD.