Analyst Tal Liani of Bank of America Securities reiterated a Buy rating on SailPoint, Inc., retaining the price target of $27.50.
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Tal Liani has given his Buy rating due to a combination of factors including SailPoint’s strong execution and strategic growth initiatives. The company benefits from favorable trends in the identity market, maintaining a consistent net retention rate and experiencing robust growth in newer modules such as non-employee risk management, data access security, and machine identity security. Additionally, SailPoint’s ability to derive a significant portion of its growth from new clients sets it apart from its peers.
Moreover, the transition from perpetual to subscription licensing has enhanced revenue stability and visibility, with management expecting a substantial portion of new annual recurring revenue to come from SaaS. This transition is anticipated to improve margins over time, with projected growth in both annual recurring revenue and overall revenue. The valuation of SailPoint’s stock suggests potential for upside, supported by the company’s high growth profile and the expansion of the identity market into areas like Machine Identity and Agentic AI.
In another report released yesterday, Morgan Stanley also upgraded the stock to a Buy with a $25.00 price target.