SailPoint stock price target raised to $27 from $24 at Jefferies

Published 12/06/2025, 11:04
SailPoint stock price target raised to $27 from $24 at Jefferies

Jefferies raised its price target on SailPoint Technologies Holdings (NYSE:SAIL) (NASDAQ:SAIL) to $27.00 from $24.00 on Thursday, while maintaining a Buy rating on the identity security firm. The new target represents a potential 20% upside from the current price of $22.53, with analyst targets ranging from $20 to $30. According to InvestingPro analysis, the stock appears overvalued at current levels.

The price target increase follows SailPoint’s strong first-quarter performance, which exceeded the company’s guidance for annual recurring revenue, revenue and operating margins, according to Jefferies. The company, now valued at $12.5 billion, maintains a healthy gross profit margin of 63% and a solid current ratio of 1.17.

The research firm noted that SailPoint "bucked the trend" seen across the cybersecurity sector this quarter, demonstrating that identity security remains a resilient area of spending that is "at the forefront of AI security."

Jefferies identified several growth drivers for SailPoint, including its success in displacing large legacy competitors and ongoing maintenance-to-SaaS conversions among its customer base.

Based on these factors, the firm expects SailPoint to maintain growth exceeding 20% annually over the next three years, supporting the higher price target while keeping its Buy recommendation unchanged.

In other recent news, SailPoint Technologies Holdings reported strong first-quarter results, highlighted by a 30% year-over-year increase in annual recurring revenue (ARR), surpassing Wall Street’s expectations. The company also raised its fiscal year 2026 ARR guidance to $1.1 billion, indicating a 25.5% growth. SailPoint is expanding globally with the launch of its first SaaS instance in the Middle East, aimed at meeting regional demands for identity security solutions. Analyst firms have reacted to these developments with varying opinions. Mizuho (NYSE:MFG) raised its price target to $26 while maintaining a Neutral rating, noting the company’s strong SaaS transition but expressing caution about future cross-selling success. BTIG increased its price target to $29, maintaining a Buy rating and highlighting the company’s ability to displace legacy vendors. Wells Fargo (NYSE:WFC) initiated coverage with an Equal Weight rating and a $16 price target, citing concerns about SailPoint’s growth potential amid strong competition. Meanwhile, TD Cowen reiterated a Buy rating with a $30 target, reflecting confidence in SailPoint’s market positioning and growth prospects.

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