Okta Analyst Knocks Off Price Target By 13%, Courtesy Microsoft

August 29, 2022 12:13 PM | 1 min read |

BMO Capital analyst Keith Bachman maintained Okta Inc OKTA with an Outperform and lowered the price target from $125 to $110 ahead of its Q2 earnings this week.
Bachman cited the improved capabilities and employee market wins by Microsoft Corp MSFT, which he continues to see as becoming a more formidable competitor in the workforce segment, driving his price target cut.
Bachman adds that Okta will continue to incur substantial losses through FY24, partially driven by the state of competition.
He believes Okta is well-positioned to benefit from the ongoing shift to the cloud.
He also believes the identity market offers meaningful, sustained growth, particularly with the development of consumer identities.
Price Action: OKTA shares traded lower by 3.19% at $90.50 on the last check Monday.