SailPoint (SAIL) was downgraded due to concerns over growth durability and competitive positioning as the identity governance market shifts toward broader platform-based identity and access management offerings, BofA Securities said in a Friday note.

The analyst said larger incumbents and hyperscalers are increasingly bundling authentication, directories, conditional access and telemetry, which could weigh on demand for standalone governance vendors and limit upside for those providers.

BofA added that growth is expected to moderate as SaaS-driven expansion matures, with earlier migration tailwinds from term and perpetual licenses fading, while SaaS growth is likely to decelerate over the next two years.

The note highlighted emerging product areas, including AI-driven identity capabilities and agentic frameworks, as potential offsets, with early traction in non-human identity workloads and increasing ARR from newer offerings.

BofA downgraded the stock to Neutral from Buy with a price target of $16.

Shares of SailPoint were down 1% in Friday trading.

Price: 14.30, Change: -0.12, Percent Change: -0.83