
SailPoint Inc (SAIL) Stock Forecast & Price Target
SailPoint Inc (SAIL) Analyst Ratings
Bulls say
SailPoint Inc demonstrates a strong growth trajectory within the identity security market, with a notable increase in Dollar-Based Net Retention (DBNR) from 110% in FY23 to 114% in FY24, indicating effective customer retention and expansion strategies. The company's transition towards SaaS solutions has resulted in approximately 75% of incremental Annual Recurring Revenue (ARR) coming from SaaS contracts for the twelve months ended October 31, 2024, up from 68% in the prior period, showcasing robust demand for its offerings. Additionally, SailPoint's impressive execution post-privatization, highlighted by over 30% ARR growth and anticipated continued SaaS ARR growth of more than 30% year-over-year, underscores its competitive advantages and positive outlook in the industry.
Bears say
SailPoint's projected free cash flow (FCF) margins of approximately 14% for FY27 indicate underperformance compared to both high growth and security peers, raising concerns about its financial robustness. Additionally, the anticipated decline in fully on-premises identity governance and administration (IGA) deployments to about 20% by CY25 signals a significant shift in market dynamics that may hinder revenue growth. Furthermore, challenges such as a projected $26 million drop in maintenance revenue and minimal new logo growth in Security Verify contribute to a negative outlook, compounded by potential execution issues and a reliance on third-party services, which could impact overall operational efficiency and profitability.
This aggregate rating is based on analysts' research of SailPoint Inc and is not a guaranteed prediction by Public.com or investment advice.
SailPoint Inc (SAIL) Analyst Forecast & Price Prediction
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