Analysts Continue To See Sharp Upside In Okta Despite Cutting Price Targets

Analysts reiterated ratings on Okta Inc OKTA while slashing price targets post Q3 beat.

• Piper Sandler analyst Rob Owens upgraded to Overweight from Neutral with a PT of $270, up from $250 (25% upside). 
• He believes it is "time for investors to dive back in," given Okta's solid fundamentals and "compelling" outlook. 
• The recent selloff in the stock has created a buying opportunity as the company is well-positioned to deliver further growth into 2022 with new solutions that will address adjacent security segments.
• Mizuho analyst Gregg Moskowitz lowered the PT to $250 from $305 (16% upside) and kept a Neutral. 
• The analyst continues to believe Okta's technological and go-to-market "advantages versus most peers are significant." Still, he dropped the price target to reflect the recent contraction in peer-group multiples.
• Baird analyst Jonathan Ruykhaver lowered the PT to $230 from $265 (6% upside) and kept a Neutral. 
• The analyst said he remains cautious on Okta given high execution risk but looks to see the healthier performance continue as the company does appear to be executing solidly and management commentary was positive.
• JPMorgan analyst Sterling Auty lowered the PT to $230 from $295 and kept a Neutral. 
• Standalone Okta grew slightly faster than last quarter, and that should come as a relief to investors concerned about an organic slowdown, but the guidance "implies a noticeable slowdown organically."
• DA Davidson analyst Rudy Kessinger lowered the PT to $260 from $315 (20% upside) but kept a Buy. 
• The cross-selling between Okta and Auth0 is going well as the company continues to gain traction upmarket. Still, his reduced price target reflects the recent market pullback and lower peer multiples.
• Morgan Stanley maintained Okta with an Overweight and lowered the price target from $315 to $300 (39% upside).
• BMO Capital analyst Keith Bachman maintained Okta with an Outperform and reduced the price target from $293 to $270.
• Price Action: OKTA shares traded higher by 9.27% at $216.44 on the last check Thursday.