Jefferies covered risk management in cybersecurity for the first time and received a Rapid7 (RPD.US) “buy” rating

The Zhitong Finance App learned that the investment company Jefferies published a research report, began focusing on individual stocks in the cybersecurity market risk exposure management field, and covered Rapid7 (RPD.US), Tenable (TENB.US), and Qualys (QLYS.US) for the first time.

Rapid7

Jefferies analyst Joseph Gallo wrote in a research report that the initial Rapid7 “buy” rating, with a target price of $50. The analyst pointed out that the company is competing for a share in the $30 billion risk exposure management field, and the market is expected to grow at a compound annual rate of 16% by 2028.

According to Gallo, Rapid7 has received attention in the areas of security information and event management and cloud risk management, both of which are considered non-core areas. He added that this is important as the company's core vulnerability management solution is facing declining demand and macroeconomic pressure.

Gallo wrote, “We have seen that as [entry into the market] changes and the focus on channels, increased execution will benefit, while at the same time, the transaction price of the business is lower than our implied underlying value.”

Tenable

Gallo gave Tenable a “holding” rating, with a target price of $45, and stated that Tenable is the “most mature player” in risk exposure management.

Gallo wrote, “Tenable One is its unified platform, providing an opportunity to offset cyclical and slowing core virtual machine revenue by bundling other solutions. However, Tenable is in the early stages of development outside of the core (vulnerability management) (which is estimated to account for 70% of the current business), which makes (the valuation) feel very reasonable.”

Qualys

Gallo gave Qualys a “holding” rating, with a target price of $135. Gallo said the upward growth rate may still be “difficult” until growth in neighboring sectors has a greater effect on the company as a whole.

Gallo wrote, “Qualys is focused on investing in S&M, but we anticipate limited upside, especially given that it has the second-toughest new business (billing) setup across our broader network coverage in FY2025.”