Market Overview

Goldman Positive On Sailpoint's Technology And Roadmap, But Sees Valuation As A Deterrent

Share:
Goldman Positive On Sailpoint's Technology And Roadmap, But Sees Valuation As A Deterrent
Related
Benzinga's Top Upgrades, Downgrades For August 21, 2018
77 Biggest Movers From Yesterday

Sailpoint Technologies Holdings Inc (NYSE: SAIL), a provider of on-premises or cloud-based identity and access management solutions, has a strong competitive positioning but valuation prompted an analyst at Goldman Sachs to stay on the sidelines.

The Analyst

Analyst Gabriela Borges initiated coverage of Sailpoint with a Neutral rating and a 12-month price target of $32.

The Thesis

Sailpoint's competitive positioning has several structural positives, Borges said in a Tuesday note.

Borges expects the growth of identity governance budgets to exceed the security/enterprise software budget, primarily due to increased regulation and complexity. The analyst also noted the company has built a "more dynamic and scalable platform" having superior win rates, relative to incumbents.

"We believe SailPoint's focus on the business user and its rich set of integrations with back end systems creates stickiness and a high barrier to entry," the analyst said.

The analyst sees the company's new products creating a cross-sell opportunity, possibly driving a much bigger total addressable market than what's currently forecast by third parties. Borges expects SecurityIQ and IdentityAI, which are still early in their adoption, to drive incremental growth over the next three years.

Despite being positive on the company's technology and roadmap, Goldman attributed its neutral stance on the stock's valuation. The stock is trading at 23 times its 2019 normalized EPS estimate compared to the S&P 500 Index, which is trading at a multiple of 17 times.

The Price Action

Sailpoint shares have gained about 100 percent in the year-to-date period. The stock traded around $29.24 at time of publication.

Related Links:

Morgan Stanley, Stifel Convinced Of Cybersecurity Firm Tenable Holdings' Market Opportunity

Needham Shifts To Neutral On Okta, But Continues To Have Positive Long-Term View

Latest Ratings for SAIL

DateFirmActionFromTo
Nov 2018Goldman SachsUpgradesNeutralBuy
Sep 2018Northland SecuritiesInitiates Coverage OnMarket Perform
Aug 2018Goldman SachsInitiates Coverage OnNeutral

View More Analyst Ratings for SAIL
View the Latest Analyst Ratings

Posted-In: Gabriela Borges Goldman Sachs IdentityAI SecurityIQAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (SAIL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
APTIJefferiesDowngrades38.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Jefferies Finds Multiple Reasons To Turn Bullish On Discovery

Boeing Wins An $152M F/A-18 Jets Deal