Analysts Laud Ping Identity's Execution Following Maiden Report As Public Company

Ping Identity Holding Corp PING, a provider of identity and access management technology, reported better-than-expected third-quarter results and issued above-consensus revenue guidance, sending shares sharply higher.

The Analysts

Bank of America analyst Tal Liani reiterated a Buy rating on Ping Identity and increased the price target from $21 to $24. (See his record here)

Credit Suisse analyst Brad Zelnick maintained an Outperform rating and $21 price target. (See his track record here )

Ping Is Executive Well

Ping's maiden earnings report as a public company revealed an EPS beat, driven by volume and better-than-expected gross margins. Liani said key metrics such as subscription revenues, ARR, billings and dollar-based net retention rate are all improving.

Liani also noted the company won several large deals during the quarter, including a new deal with the largest Australian bank and an expansion with a Fortune 500 company.

Ping, according to the analyst, is executing well with robust demand across the entire suite of solutions.

BofA sees enterprise digital transformation, identity security gaining mindshare and data governance regulations as multiple drivers to encourage platform adoption in the near- to mid-term.

A Standout Category Leader

Ping's ARR growth of 23% and net retention rate of 115% suggest it's executing well on its strategy as the leading IAM solution for hybrid cloud use cases, Zelnick said.

EBITDA margin as well as operating cash flow exceeded his expectations. As such, Zelnick increased his 2019 EPS estimate for Ping from 33 cents to 49 cents.

Credit Suisse sees Ping as a key beneficiary of the shift toward a hybrid cloud architecture, as users and applications become increasingly distributed.

"Ping is a standout category leader, featuring a comprehensive platform for addressing a broad set of use cases, with particular appeal to enterprises that have complex needs across multiple clouds and on-premise IT," Zelnick wrote in the note.

Price Action

Ping Identity shares were advancing 14.4% to $18.93 at time of publication.