In a report released yesterday, Richard Davis from Canaccord Genuity maintained a Hold rating on SailPoint Technologies Holdings Inc (SAIL), with a price target of $29. The company’s shares opened today at $29.32.
Davis noted:
“We acknowledge that some sell- and buy-siders believe we are in a golden age for software stocks in which valuation doesn’t matter. Perhaps so, but it is intellectually inconsistent to assert that SAIL is “cheap” because it sells for a low EV/R multiple compared to non-comparable subscription/SaaS business model companies. In fact, Perpetual license models are the best revenue model to have when you’re selling into a robust buying climate (because you get a big slug of 95%+ gross margin license fees up front). And indeed, that is where SailPoint finds itself. This is a company with undeniably good software, and ID Governance systems are definitely in an upgrade cycle. Even so, when a perpetual sale moves out or forward by just days, the impact on quarterly earnings is significant.”
According to TipRanks.com, Davis is a top 25 analyst with an average return of 42.3% and a 84.4% success rate. Davis covers the Technology sector, focusing on stocks such as Upland Software, Salesforce.com, and Everbridge Inc.
SailPoint Technologies Holdings Inc has an analyst consensus of Strong Buy, with a price target consensus of $33.75, which is a 15.1% upside from current levels. In a report released today, Northland Securities also assigned a Hold rating to the stock with a $30 price target.
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Based on SailPoint Technologies Holdings Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $5.1 million. In comparison, last year the company had a net profit of $5.38 million.
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SailPoint Technologies Holdings, Inc. engages in the provision of enterprise identity governance solutions. It operates through the following geographical segments: United States; EMAE or Europe, the Middle East, and Africa; and Rest of the World. It also offers licensing of software, sale of professional services, maintenance, and technical support.
