Poised to end June on a bullish note, shares of Tenable (TENB 3.84%) are extending a climb that began with yesterday's 11% rise. With an analyst upwardly revising his price target on the cybersecurity stock, investors are finding a new reason to bid the stock higher.
As of 10:18 a.m ET, shares of Tenable are up 7%.
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One firm deems Tenable the leader in exposure management
Maintaining an overweight rating, Brian Essex, an analyst at JPMorgan, hiked his price target on Tenable stock to $40 from $35.
NASDAQ: TENB
Key Data Points
The firm also added Tenable stock to its Analyst Focus List. According to Thefly.com, Essex based his increasingly bullish outlook on the belief that threats from China will continue to drive demand for Tenable's cybersecurity solutions; moreover, Essex sees the company as the best-positioned exposure management vendor to address the escalating threats.
Based on yesterday's closing price of $33.49, Essex's $40 price target implies upside of 19.4%.
Yesterday, Tenable announced that it achieved Federal Risk and Authorization Management Program (FedRAMP) High and Impact Level (IL) 5 authorization from the U.S. government, making it eligible for federal cloud contracts with stringent security requirements.
Is Tenable stock a buy?
Rather than placing too much emphasis on an analyst's higher price target, investors would be better served by evaluating Tenable on its fundamentals. Growing both revenue and free cash flow at strong clips over the past several years, Tenable is on a solid financial footing.
With Tenable stock now trading at 16.6 times forward earnings, today seems like a great time for investors investigating cybersecurity stocks to consider starting a position.
