SailPoint (SAIL) is in a good position to capitalize on rising identity spend and maintain durable growth while driving margins up, RBC Capital Markets said in a note Monday.
RBC analysts pointed to factors including spending for identity security remaining a top priority and room to grow in Identity Governance and Administration.
"As the company executes on the SaaS transition, we believe profitability is biased upward," the report said.
The analysts said the company's roots are in IGA, but it has worked on rebranding as a Cloud Identity Security vendor.
"This is a trend we think that could help support durable LT profitable growth," they said.
RBC began coverage of the stock with an outperform rating and a $27 price target.
Price: 21.37, Change: -0.68, Percent Change: -3.08
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.