SailPoint Technologies is a buy, this analyst says

Roth Capital analyst Taz Koujalgi initiated coverage of SailPoint Technologies (SailPoint Stock Quote, Chart, News, Analysts, Financials NASDAQ:SAIL) with a “Buy” rating and $19.00 target in a May 20 report, saying the identity security company is well-positioned for long-term growth.

SailPoint, a Texas-based identity governance and administration company, estimates its addressable market at about $55-billion, compared with its current run-rate of roughly $1-billion in ARR.

Koujalgi said SailPoint’s competitive advantage comes from the breadth of identity types it covers and the depth of entitlement data it can manage, supported by two decades of focus on identity governance and thousands of application integrations.

He said growth should be supported by legacy IGA displacement, migration of non-SaaS customers to SaaS, machine identities, AI agents, emerging products and new customer additions.

The analyst said agentic AI should be a tailwind because it will increase the number of identities enterprises need to secure.

“SailPoint already governs and secures non-human identities, including machine identities, service accounts and bots and hence securing AI agents will be a natural evolution of its platform,” he said.

Koujalgi said SailPoint’s FY27 ARR guidance and Street expectations appear conservative, creating room for a beat-and-raise pattern. He also said the stock trades at about 5x FY28/CY27 EV/Sales, below peers on a growth-adjusted basis.

“The company trades at a discount to its peers and given the strength in its business and potential upside to numbers, we believe the risk/reward is attractive,” Koujalgi said.

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