SailPoint, Inc., the Technology sector company, was revisited by a Wall Street analyst today. Analyst Meta Marshall from Morgan Stanley upgraded the rating on the stock to a Buy and gave it a $25.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Meta Marshall has given her Buy rating due to a combination of factors that highlight SailPoint’s strategic positioning and growth potential in the identity market. SailPoint is recognized as a leader in the Identity Governance and Administration (IGA) market, holding a significant market share of over 20%. The company’s transition to a Software-as-a-Service (SaaS) model is expected to drive a compound annual growth rate of 28% in annual recurring revenue from fiscal year 2023 to 2026. This growth is supported by opportunities to replace legacy systems and strong upsell and cross-sell capabilities, which contribute to attractive net retention rates.
Moreover, SailPoint has shown promising early success in expanding into new areas of the Identity Security ecosystem, such as Machine Identity, Non-Employee Risk Management, and Data Access Security. These areas have demonstrated significant growth, with contributions to annual recurring revenue more than doubling year-over-year. Additionally, the expiration of the lock-up period, which had been a significant overhang, now positions the company more favorably in terms of valuation compared to its peers. These factors collectively support the Buy rating, as they indicate sustained momentum and potential for future growth.
Marshall covers the Technology sector, focusing on stocks such as Arista Networks, Lumentum Holdings, and Cisco Systems. According to TipRanks, Marshall has an average return of 5.1% and a 57.39% success rate on recommended stocks.
In another report released on August 21, J.P. Morgan also maintained a Buy rating on the stock with a $26.00 price target.