KeyBanc Sets Sailpoint Technologies Rating At Overweight

Cybersecurity provider Sailpoint Technologies Holdings Inc SAIL began publicly trading in November, and it didn't take long for Wall Street analysts to start coverage of the stock with a bullish stance.

The Analyst

KeyBanc Capital Markets' Rob Owens initiated coverage of Sailpoint's stock with an Overweight rating and $19 price target.

The Thesis

Sailpoint stands out in the cybersecurity space given its "comprehensive approach" to identity governance that consists of compliance controls and data access governance for users, applications and data, the analyst said in a Monday note. (See Owens' track record here.) 

Sailpoint is able to to provide critical security visibility by addressing the following, Owens said:

• Who has access to what enterprise resources.
• Who has access to what.
• How granted access is being used.

"As cloud adoption renders hybrid IT the preferred architecture for the foreseeable future, SailPoint's ability to deliver across on-premise, cloud, and mobile environments should increasingly differentiate the offering, in our view," the analyst said. 

Looking forward, Sailpoint will likely able to sustain growth given three favorable trends, Owens said:

• A rapid growth of new identities for organizations to secure, govern and manage, connections to the IT environment.
• An exponential outgrowth of unstructured data which consists of high-value enterprise information.
• Compliance regulations that require controls to prevent unauthorized access to sensitive data.

Price Action

Shares of Sailpoint were trading higher by more than 1 percent ahead of Monday's market open.

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