In a report released today, Keith Weiss from Morgan Stanley maintained a Hold rating on SailPoint, Inc. (SAIL – Research Report), with a price target of $26.00.
Keith Weiss has given his Hold rating due to a combination of factors influencing SailPoint, Inc.’s current market position and future prospects. SailPoint is recognized as a leader in the Identity Governance and Administration (IGA) market, benefiting from the growing demand for identity security solutions as enterprises increasingly shift to cloud-based operations. The company has demonstrated strong growth potential, with a significant market share and robust annual recurring revenue growth driven by its transition to a SaaS model and opportunities to replace legacy systems.
However, despite these positive aspects, Keith Weiss points out certain risks that justify a Hold rating. The company’s expansion beyond its core IGA market introduces challenges, as it faces competition from established players in related areas like Access Management and Privileged Access Management. Additionally, SailPoint’s exposure to federal contracts, which constitute a notable portion of its revenue, could be affected by political and economic changes. Given these factors, along with the current valuation at 10X EV/CY26 sales, Weiss sees limited immediate upside, warranting a cautious stance with a Hold recommendation.
In another report released today, Goldman Sachs also initiated coverage with a Hold rating on the stock with a $23.00 price target.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SAIL in relation to earlier this year.