Andrew Nowinski, Wells Fargo’s analyst for CyberArk Software and Sailpoint (NYSE) has raised the price targets of these stocks because he thinks that they will benefit from Okta (NASDAQ)’s security incident.

Nowinski claims that OKTA may be avoiding some customers because the company did not notify the public of the situation promptly.

Although the CyberArk platform would likely not have prevented this breach better than Okta technology we think the period between the breach being identified (January), and the disclosure to customers (March), could be a deciding factor for customers choosing CyberArk. CyberArk may be able exceed 17% revenue growth guidance in FY22 if the incident leads to a higher win ratio.

Although we feel that the current valuation likely factors in some of these upsides, Nowinski indicated in a note to clients.

An updated price target for EW-rated CYBR shares is $170.00, an increase from its prior 150.00.

Similar to the $55.00 analyst, SailPoint’s price target was raised by the analyst to $60.00 per shares.

Okta’s new IGA system will not be available in North America before mid-year so we don’t see any competitive threat.

By Senad Karaahmetovic