Hashi Has Ingredients To Insulate It From Slowdown, However It's Not immune, Analyst Says

Needham analyst Alex Henderson reiterated Hold on HashiCorp, Inc HCP.
HCP has seen considerable pressure, as it expects maximum margin pain in FY3Q. This style of "growth at all costs" is out of favor, he noted.
As the economy slows and spending tightens, Hashi's strategic positioning, Open Source orientation, and controlled growth strategy should insulate it from the macro slowdown, he believes, but it's not immune.
He thinks Hashi will temper spending in this environment, and this, in turn, supported by rearview mirror investments, should allow more operating margin leverage and a narrowing of EPS losses.
Like Okta, Inc OKTA, he thinks the Street may like this outcome.
He thinks it's too early to step up as the projected losses are daunting even if they narrow more rapidly.
Also Read: Okta Stock Can Move In Positive Direction Despite Challenges, Analysts Say
Price Action: HCP shares traded lower by 1.86% at $26.94 on the last check Monday.

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