Why Are SailPoint Technologies Shares Trading Higher Today?

  • Analysts bumped up price targets on SailPoint Technologies Holdings Inc SAIL on Q3 beat.
  • RBC Capital analyst Matthew Hedberg maintained an Outperform and raised the PT from $60 to $65, implying a 6% upside.
  • Jefferies analyst Brent Thill raised the PT to $65 from $60 and reiterated a Buy. 
  • The company beat Q3 estimates for revenue and annual recurring revenue and raised 2021 ARR guidance by double the magnitude of the Q3 beat. 
  • He says SailPoint's operating margin was significantly better even with increased hiring. Thill remains positive on the shares.
  • Wells Fargo analyst Andrew Nowinski raised the PT to $67 from $54 and maintained an Overweight. 
  • The analyst notes that SailPoint reported "strong" Q3 results, beating the high-end guidance by 5.9%. 
  • Looking ahead to Q4, the company said the demand for identity security remains very strong, and the quality and depth of the pipeline remains healthy. 
  • He continues to believe SailPoint is well-positioned to continue taking share in the IGA market, as they offer the most feature-rich solutions for both on-premise and in the cloud.
  • Canaccord analyst T. Michael Walkley increased the PT to $75 from $70 and reiterated a Buy. 
  • The analyst anticipates more muted revenue growth through 2022 due to the revenue headwinds sustained during the transition but expects durable demand to drive reacceleration after that.
  • DA Davidson analyst Rudy Kessinger raised the PT to $73 from $62 and maintained a Buy. 
  • The company's Q3 results were well ahead of consensus, and its annual recurring revenue growth of 44% was a record high.
  • Kessinger also cites SailPoint's "attractive valuation" while noting that the increasing momentum in the business is being driven in large part by accelerating demand in the upper end of the enterprise market, particularly for their SaaS offering.
  • Price Action: SAIL shares traded higher by 22% at $58.8 on the last check Wednesday.
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