Jefferies Raises Qualys (QLYS) Price Target After Better-Than-Feared Earnings

Qualys, Inc. (NASDAQ:QLYS) is one of the most undervalued cybersecurity stocks to buy now. On August 6, Jefferies maintained its Hold rating on cybersecurity firm Qualys, Inc. (NASDAQ:QLYS), but increased its price target from $150 to $140. That is a 15.5% implied upside from the current market price of $129.87. Jefferies cited that the company faired “overall better than feared” in its Q2 earnings.

Jefferies Raises Qualys (QLYS) Price Target After Better-Than-Feared Earnings

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The company reported revenue of $163.88, a 9.9% increase year-over-year. The company continues to maintain strong net margins of 28.86% in Q2. That number has been steadily improving over the years, which suggests great operational efficiency. Its net income increased 10.5% to $47.29 million. The EPS stood at $1.68 per share, beating estimates of $1.48. Jefferies kept its FY 26 estimates for the company stable, citing that the current billings growth guidance of 6%-8% will “ultimately determine” the shape of the revenue next year.

Qualys, Inc. (NASDAQ:QLYS) has been taking several strides in cybersecurity. Recently, it introduced Cybersecurity Asset Management, which helps its clients detect at-risk (in terms of cyber risks) assets and mitigate them with appropriate actions.

While we acknowledge the potential of QLYS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QLYS and that has a 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.