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SailPoint Positioned Well in Identity Security Market Amid Agentic AI Opportunity, RBC Says

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SailPoint Positioned Well in Identity Security Market Amid Agentic AI Opportunity, RBC Says

SailPoint (SAIL) is positioned well as an adaptive identity security provider with potential to benefit from the emerging agentic AI market, RBC Capital Markets said in a note emailed Wednesday.

The brokerage said it's optimistic about SailPoint after attending its analyst day, where the cybersecurity firm unveiled its fiscal 2029 and long-term financial targets, product strategy and pricing models.

For fiscal 2029, SailPoint is eyeing annual recurring revenue of $2.1 billion, of which $800 million is expected to be generated from artificial intelligence. The company is also aiming to achieve an adjusted operating margin of 22%.

"We believe topline targets are achievable despite the implied acceleration as we believe modernizations will accelerate and yield a healthy uplift along with the extensive agentic opportunity ahead of the company," RBC analyst Matthew Hedberg wrote in the note.

Last week, the firm said it expects ARR of $1.36 billion to $1.37 billion for its ongoing fiscal year, while the current consensus on FactSet is for $1.37 billion. Adjusted earnings are pegged at $0.30 to $0.34 per share on a revenue range of $1.27 billion to $1.28 billion. The Street is looking for non-GAAP EPS of $0.32 and sales of $1.27 billion.

SailPoint reiterated its full-year outlook at the analyst event, according to RBC.

Upside for the firm is likely to continue throughout the year based on senior management's bullish commentary around agentic inflection, Hedberg wrote. The brokerage said SailPoint's guidance "remains conservative," as it is measured about the timing of AI's impact on results but expects it to become a tailwind.

"We believe management did a good job reconciling recent bullish commentary on AI tailwinds with what we view is conservative (fiscal 2027) guidance by providing (fiscal 2029) and (long-term) targets implying accelerating growth," according to Hedberg. "We believe SailPoint remains well-positioned in a durable and growing identity security market and for the emerging agentic opportunity."

RBC maintained its outperform rating on SailPoint's stock and price target of $19.

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