Oppenheimer analyst Shaul Eyal raised the price target on SailPoint Technologies Holdings (NYSE: SAIL) to $40.00 (from $25.00) while maintaining an Outperform rating.

The analyst commented, "Simply put, 2Q20 was a blow-out quarter, handily surpassing Street expectations with revenue of $92.5M (up 46.6% y/y) exceeding Street's $69.1M estimate. As a result, FY20 guidance was reinstated calling for +19% y/y annual growth at the midpoint. The outperformance is driven by record large deals, some late March slippage recorded into 2Q on COVID-19 delays, and identity enabling digital transformation. Work-from-anywhere is elevating the urgency of a dissolving perimeter and 2Q serves as a data point of the mission criticality of IGA enabling identity-centric, zero trust secular trends. SAIL's 1H revenue momentum is up 35.8% y/y, displaying strong linearity exceeding the 15% LT goal. We remain Outperform and are raising our PT to $40, based on 9.3x EV/FY21E revenue."