Okta, Inc (OKTA) PT Lowered to $105 at JPMorgan
JPMorgan analyst Brian Essex lowered the price target on Okta, Inc (NASDAQ: OKTA) to $105.00 (from $110.00) while maintaining a Neutral rating.
The analyst comments "Execution relatively healthy but we're still waiting for recovery. OKTA delivered solid results with better than expected cRPO, revenue, operating margin, and FCF. Results were positive as the company reached GAAP profitability for the first time in its history, commentary on new product traction was positive, and execution for the quarter was in spite of macro conditions that remain challenging. Results were partially offset by cRPO guidance below consensus for 3Q, lower q/q NDRR, and management commentary that reflected ongoing macro headwinds which could result in lower NDRR as we move through the remainder of the year. Channel commentary was constructive as investments seem to be deepening OKTA’s relationships with key partners. Product expansion continues, as OIG has penetrated over 1,000 customers in less than two years. We continue to believe OKTA is well positioned in IAM markets with emerging exposure to IGA and PAM but we still need to see better evidence of macro support and sales execution before turning more constructive. We are encouraged by results this Q, with indications that large enterprise spending remains stable, but view risk-reward balanced at current levels considering lack of seat growth in core markets, a challenging new logo environment, and levels of growth deceleration expected this year. We remain Neutral rated as we lower our Dec-25 price target to $105 (from $110 previously), reflecting ongoing headwinds, and we update estimates to reflect current results and revised outlook."