Canaccord Genuity analyst Richard Davis views Cisco Systems' (CSCO) acquisition of privately held Duo Security for $2.35B as positive for both Okta (OKTA) and SailPoint Technologies (SAIL). Duo, whose primary function is to provide multi-factor authentication, appears to have been growing rapidly and was widely thought to be readying for an initial public offering, Davis tells investors in a research note. He believes this supports the notion that there is a "strong upgrade cycle" underway for identity management. The analyst says Cisco is paying above 15 times his assumption of Duo's revenues. There is no question that Cisco's purchase is at a high valuation, which should be a boost for Okta and SailPoint shares, according to Davis. He has a Buy rating on the former with a $60 price target and a Hold rating on the latter.