JPMorgan upgraded Tenable Holdings, Inc. (NASDAQ:TENB) to Overweight from Neutral with a new price target of $56, up from $51 per share.
Analysts told investors in a note that the company is well-positioned for better fundamentals.
"We see an attractive opportunity for better growth, margin expansion, and FCF moving through the back half of the year into FY24 for TENB," the analysts wrote.
"As demand continues to build, execution is improving, the company continues to dominate peers in core VM markets, and management is taking a thoughtful approach toward expansion into adjacent markets," they added.
JPMorgan believes expectations remain relatively conservative and, following better-than-expected revenue, CCB, and cRPO growth last quarter, the firm is encouraged by TENB's upside potential.
"In addition to healthy core VM business, the company recently announced that it is acquiring Ermetic, a Cloud Security vendor, which should give TENB exposure to a higher growth market with meaningful potential TAM expansion," they concluded.