Needham & Company Sees 'Low Bar' for Okta (OKTA) EPS

Needham & Company analyst Alex Henderson reiterated a Buy rating and $100.00 price target on Okta, Inc (NASDAQ: OKTA) into results on Wednesday, August 30th after the close. The analyst sees a low bar and stabilizing market.

The analyst commented, "Okta posted decent results in FY1Q but the stock reset lower on a sharper than expected decline in Net Retention and CRPO outlook as macro headwinds accelerated into the new year. Macro dominated the FY1Q call, and we expect more of the same in 2Q given management's guidance for further deterioration. 2Q current RPO guidance for 14%-15% growth to $1.71-$1.72B implies modest Bookings growth of 2% yr-yr and qtr-qtr despite an easier comparison and improving productivity thanks to Okta’s GTM turnaround. Revenue growth guidance for 18%/$534M assumes macro further deteriorated in 2Q across both Workforce and Customer Identity, which we think is conservative. Our 2Q checks and Cybersecurity prints so far have emitted tones of stabilization, which should bode well for Okta as the independent leader in a critical Identity Security market."

For an analyst ratings summary and ratings history on Okta, Inc click here. For more ratings news on Okta, Inc click here.

Shares of Okta, Inc closed at $72.12 yesterday.

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