Jefferies Downgrades Okta, Inc (OKTA) to Hold, 'We expect upside will be more muted than in past years'

Jefferies analyst Brent Thill downgraded Okta, Inc (NASDAQ: OKTA) from Buy to Hold with a price target of $95.00 (from $85.00).

The analyst commented: "We're downgrading OKTA to a Hold as the stock has reached our $85 PT. We view our new $95 PT, or 6x EV/CY25 rev as appropriate, particularly given the risk associated with the worse than expected cyber incident. While we still view OKTA as a great technology, we expect upside will be more muted than in past years as PAM takes longer to ramp than IGA while NRR remains suppressed NT due to the incident. Shares have significantly rebounded recently, rising 25% vs the IGVs (1)% in the past month (11/30/23 -1/3/24) which also raises risk in the interim. In order for shares to warrant a re-rating past a 6x CY25 rev multiple, we believe improvement in execution is required which will take time."

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 $83.37 yesterday.

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