UPDATE: JPMorgan Double Upgrades Qualys (QLYS) to Overweight

JPMorgan analyst Sterling Auty upgraded Qualys (NASDAQ: QLYS) from Underweight to Overweight with a price target of $160.00 (from $110.00).

The analyst comments "Qualys has been the most profitable SaaS company for quite some time, but it had struggled with topline growth. Finally, it appears after a couple years of investment in product innovation that growth is inflecting upwards. Management is about to step on the gas in terms of sales and marketing investment, which will pressure operating margins, but our data science model shows the overwhelming preference for topline growth in valuations and we believe that can cause the stock to outperform from current levels. The improvement in topline growth has occurred even as the company fell behind on sales hiring and of course that can be a risk to the improvement, but we believe the risk/reward set up compensates investors appropriately."

For an analyst ratings summary and ratings history on Qualys click here. For more ratings news on Qualys click here.

Shares of Qualys closed at $125.18 yesterday.

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