Okta Inc Gets a Buy Rating from Oppenheimer

By Carrie Williams

Oppenheimer analyst Shaul Eyal reiterated a Buy rating on Okta Inc (NASDAQ: OKTA) today and set a price target of $60. The company’s shares closed yesterday at $52.94.

Eyal said:

“Following a well-attended investor meeting with and VP IR, Catherine Buan, we reiterate our bullish view driven by our belief that: (1) OKTA’s approach as an agnostic IAM vendor positions it at the early stages of a sizable yet underpenetrated market opportunity (which we believe to be >$20B). (2) Recent investments (S&M, R&D, acquisitions) have generated a strong ROI for OKTA’s innovation, up-sell momentum (consistent 121% dollar-based retention rate), and net new customer additions (F1Q customer base +40% YoY), a cadence that we envision positively supporting future outperformance. (3) We continue to view OKTA’s underlying strategy behind its Okta Integration Network as one of the leading pillars for its steady ~+60% YoY growth over the past five quarters. Reiterate Outperform.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 15.6% and a 67.8% success rate. Eyal covers the Technology sector, focusing on stocks such as Nuance Communications, Verint Systems Inc, and Varonis Systems.

Currently, the analyst consensus on Okta Inc is Strong Buy and the average price target is $61.67, representing a 16.5% upside.

In a report issued on June 6, Canaccord Genuity also maintained a Buy rating on the stock with a $60 price target.

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Based on Okta Inc’s latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $25.96 million. In comparison, last year the company had a GAAP net loss of $28.9 million.

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Okta, Inc. provides an enterprise-grade identity management services. Its products include single sign-on, multi factor authentication, API access management, API products and integration network services. Okta was founded by Todd McKinnon and J. Frederic Kerrest in 2009 and is headquartered in San Francisco, CA.