Wells Fargo analyst Andrew Nowinski raised price targets on CyberArk Software (NASDAQ:CYBR) and Sailpoint (NYSE:SAIL) as he believes these two stocks are likely to benefit from Okta's (NASDAQ:OKTA) security incident.
Nowinski argues that some customers may decide to stay away from OKTA as the company failed to notify the public about the incident in a timely manner.
While the CyberArk platform likely would not have prevented the breach any better than the Okta technology, we believe the time lapse between when the breach was identified (January) and when the breach was disclosed to customers (March) could sway customers toward CyberArk. If this incident does result in a higher win percentage, CyberArk should be able to exceed the 17% revenue growth management guided to for FY22,
though we believe the current valuation is likely factoring in some of this upside, Nowinski said in a client note.
A new price target on EW-rated CYBR is now $170.00 per share, up from the prior $150.00.
Similarly, the analyst hiked the price target on SailPoint to $60.00 per share, up from $55.00.
With Okta's upcoming new IGA solution not launching in North America until mid-year, we see a minimal competitive threat from Okta near term, Nowinski added on SAIL.
By Senad Karaahmetovic