Identity management software provider Sailpoint Technologies Holdings Inc SAIL's IPO quiet period expired Tuesday, and the sell side initiated coverage of the stock.
Operating in Attractive Markets
Jefferies analyst John DiFucci said SailPoint operates in the attractive identity governance and administration, or IGA, and data access governance markets, with industry analysts estimating about 10 percent growth. But DiFucci estimates double the pace of growth due to greenfield opportunities.
SailPoint is expected to exceed market growth rates for the foreseeable future as a disruptive innovator, the analyst said.
The firm initiated SailPoint shares with a Buy rating and $18 price target.
A Leader In Identity Management Market
Citigroup analyst Walter Pritchard said SailPoint is establishing itself as a leader in the increasingly relevant identity management market. The market has strong secular trends and a clear total addressable market, driving sustainable growth and upside to estimates, Pritchard said.
Citi sees incremental growth drivers in data governance, analytics and privileged account management. SailPoint is unique to early-stage software vendors, which are experiencing high growth accompanied by strong profitability, the analyst said.
Citi initiated SailPoint with a Buy rating and $20 price target.
Bullish Stance Driven By Three Reasons
Oppenheimer analyst Shaul Eyal said his bullish stance on SailPoint is based on three factors:
Identity's importance for modern-day security portfolios and SailPoint's robust positioning in the IGA market, which could help capture enterprise market share.
The open identity platform approach of the company, helping customers govern identities in both on-premise and cloud environments.
30 percent revenue growth potential in 2017 and prolonged revenue growth of over 20 percent in the longer term.
Oppenheimer initiated the stock with an Outperform and $20 price target.
Uniquely Positioned and Poised for Strong Fundamentals
The company's opportunity is supported by expanding threat vectors and high-value data, Owens said.
Owens initiated coverage of SailPoint with an Overweight and $19 price target.
After its debut on Wall Street Nov. 17, Sailpoint Technologies stock netted a gain of roughly 8 percent from its $12 offer price before ending at $13. The stock has consistently traded above the offer price.
Since its debut, SailPoint has gained about 13 percent.
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