Wells Fargo Raises Tenable Target to $45, Sees 54% Upside Potential

Wells Fargo raised its target for Tenable Holdings (TENB) to $45, implying a 54% upside from the current price of $29.2. The move follows the company's Q2 2025 revenue of $272.29, a 23% YoY growth, beating estimates. Wells Fargo remains confident in Tenable's future, seeing it well-positioned to expand in the cybersecurity market.

Wells Fargo has upgraded its price target for Tenable Holdings (TENB) to $45, indicating a 54% upside from the current price of $29.2. The move comes after the company reported robust quarterly results for Q2 2025, with revenue up 23% year-over-year (YoY) to $272.29 million, surpassing analysts' estimates. The earnings per share (EPS) of $0.34 per share also beat expectations of $0.30 per share. This strong performance is driven by the increasing adoption of Tenable One, the company's AI-powered exposure management platform, which is gaining traction with both enterprises and the U.S. government.

Tenable's Q2 results reflect a solid growth trajectory, with revenue from existing customers increasing by $24.1 million and new customers contributing an additional $2.0 million. The company's gross profit margin remained strong at 78%, consistent with the prior year. Despite an increase in operating expenses, Tenable managed to improve its loss from operations to $(7.4) million from $(8.8) million in the prior year. The company added 367 new enterprise platform customers, although this was a 10% decrease compared to the previous year. The number of customers with annual contract values of $100,000 or greater increased by 18% to 2,118.

Wells Fargo remains optimistic about Tenable's future, highlighting the company's strategic position in the cybersecurity market. The firm's outlook is built on the continued adoption of Tenable One, expansion into AI security, and improved visibility in the public sector. The integration of recent acquisitions, such as Apex Security, is expected to drive growth by enhancing the company's AI and automation capabilities.

As the cybersecurity landscape evolves, Tenable's focus on platform consolidation and addressing emerging risks associated with AI will be crucial for its continued success. The company's strong financial performance and strategic initiatives position it well for future growth, despite potential headwinds in the federal market and competitive dynamics in the cloud and hybrid environments.

References:
[1] https://finance.yahoo.com/news/tenb-q2-deep-dive-platform-025741642.html
[2] https://www.tradingview.com/news/tradingview:587e2c4ebd6f1:0-tenable-holdings-inc-sec-10-q-report/
[3] https://ca.finance.yahoo.com/news/wells-fargo-raises-tenable-tenb-170520240.html