This Analyst Is Bullish On Okta Ahead Of Its Quarterly Results

  • Needham analyst Alex Henderson reiterated a Buy and $135 price target on Okta, Inc OKTA, which will report its quarterly results on August 31. 
  • The analyst thinks they will beat and raise, but expectations align with the outcome. 
  • Last quarter, the stock had an outsized reaction to low expectations due to the hack announced in early CY22, he said.
  • The firm beat and no impact from the hack led to a positive reaction against low expectations, Henderson noted. 
  • This quarter, he did not see those same dynamics. He still expects a positive reaction to the print.
  • Henderson writes that Okta is more insulated from recessionary pressures than some might consider, as per seat pricing is sticky within contract periods and only resets on the renewals. 
  • Further, upsell, DBNR, new customer growth, and international expansion are helping drive robust growth. 
  • The customer-facing business of Auth0, now apples-to-apples, is growing faster than Okta's employee unit.
  • Price Action: OKTA shares traded lower by 5.63% at $93.02 on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!