Understanding Tenable's Revised Calculated Current Billings: Insight From Analyst's Price Target Adjustment

Needham analyst Mike Cikos reiterated a Buy rating on the shares of Tenable Holdings, Inc. TENB, lowering the price target to $48 from $51.
Expectations for longer deal cycles, lower achievement rates, and lower Dollar-Based Net Expansion rates are likely to weigh on the stock going ahead, the analyst notes.
Tenable Holdings recently lowered its outlook for Calculated Current Billings to $875 million - $885 million from the previously expected $915 million - $925 million. The lower end of the CCB guide is significantly lower than Needham's $919.5 million, and reflects Y/Y growth of 13% at the midpoint.
Given extended sales cycles and increased deal scrutiny, the analyst views Tenable's reduced calculated current billings outlook as appropriate.
However, the investors will have difficulty in matching management's latest comments regarding new pipeline generation to the guidance cut, the analyst cautioned.
Also Read: Tenable Gets Price Target Cuts By Analysts Following Weak Revenue Forecast, Shares Plunge
Price Action: TENB shares are trading lower by 19.41% at $36.59 on the last check Tuesday.

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