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The analysts set their price target on the stock at $109 a share, down from $120. Shares of the cloud-based information technology firm fell 1.1% on Friday. They are up 13% so far this year, at $127.09.
The analysts said they see risks to expectations for the second half of the year. “A consistent theme coming out of 1Q earnings has been the lack of visibility around 2H fundamentals,” they wrote in a note.
Qualys got 97% of its revenue from existing customers in 2022, the analysts noted, setting up a challenging outlook “given the current state of the business and the broader macro environment.”
Full-year guidance indicates adjusted earnings before interest, taxes, depreciation, and amortization margin should fall into the low 40s percent range from 45% in 2022, the note says. “We believe this creates a difficult narrative for shares to work, with the potential for a top line reduction paired with receding margins.”
