In a report released today, Shrenik Kothari from Robert W. Baird maintained a Buy rating on SailPoint, Inc., with a price target of $26.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors including SailPoint, Inc.’s impressive financial performance in the third quarter of fiscal year 2026. The company achieved a significant milestone by surpassing $1 billion in Annual Recurring Revenue (ARR) for the first time, with a year-over-year increase of 28%. This growth was driven by a notable acceleration in SaaS ARR, which grew by 38% year-over-year, indicating strong demand for their SaaS offerings.
Additionally, SailPoint’s total revenue grew by 20% year-over-year, exceeding market expectations by over 4 percentage points. The company’s subscription revenue also saw a healthy rise, with SaaS revenue increasing by 32.4% year-over-year. Despite a slight dip in share prices post-earnings announcement, the raised guidance for fiscal year 2026, projecting robust growth in ARR and revenue, along with an improved operating margin, supports the positive outlook and justifies the Buy rating.
In another report released on December 4, Mizuho Securities also maintained a Buy rating on the stock with a $23.00 price target.