Oppenheimer analyst Shaul Eyal maintained a Buy rating on Okta Inc (OKTA) today and set a price target of $75.16. The company’s shares closed yesterday at $81.21, close to its 52-week high of $87.72.
Eyal wrote:
“OKTA reported strong F4Q19 results that swiftly bested Street’s estimates (revenue, EPS, Billings). While FY20 revenue guidance has been elevated driven by continued migration trends to the cloud, EPS is taking a hit given accelerated R&D investments (Azuqua acquisition and organic investments). Whereas the additional investments are likely to raise concerns about OKTA’s ability to sustain its ongoing strong growth coupled with improved profitability, we strongly believe management’s recent five-year (FY24) targets remain intact. These include: 1). Revenue growth >30%, 2.) operating margins of 16-19%, and 3.) 20-25% FCF. With this in mind, we believe OKTA’s still early into its sizable ~$20B TAM opportunity, particularly with larger organizations as they continue their journey to cloud environments. $80 PT.”
According to TipRanks.com, Eyal is a top 100 analyst with an average return of 15.5% and a 67.0% success rate. Eyal covers the Technology sector, focusing on stocks such as Nuance Communications, Verint Systems Inc, and CyberArk Software.
Currently, the analyst consensus on Okta Inc is a Hold with an average price target of $79.25.
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The company has a one-year high of $87.72 and a one-year low of $37.21. Currently, Okta Inc has an average volume of 1.96M.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.
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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.
