QLYS - Qualys: Near-Term Alpha Is Likely Despite Long-Term Restraints
2024-07-10 06:14:41 ET
Summary
- The recent ~30% price drop presents a buying opportunity, as Qualys' valuation multiples are expected to expand by 2026 due to improved fundamental growth despite current EPS reductions.
- Qualys maintains strong industry partnerships and proactive management strategies, strengthening its market position despite competition and setbacks like the MSFT partnership change.
- Low debt levels, improving margins, and potential PE ratio expansion from 32.5 to 40 by 2026 suggest a stock price growth with a CAGR of 19.4%, indicating short-term market outperformance.
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Qualys: Near-Term Alpha Is Likely, Despite Long-Term Restraints