Analyst Shrenik Kothari of Robert W. Baird maintained a Buy rating on Okta (OKTA – Research Report), retaining the price target of $130.00.
Shrenik Kothari has given his Buy rating due to a combination of factors including Okta’s upcoming inclusion in the S&P MidCap 400 index, which is expected to enhance its visibility and attract more institutional interest. This inclusion is a testament to Okta’s solid financial performance and growth trajectory, as it meets the index’s requirements for market cap and liquidity.
Additionally, Okta’s financial results have demonstrated strong growth and improving profitability, reinforcing its position in the mid-cap segment. The company’s valuation remains attractive, with its multiples being lower than the median for high-growth SaaS companies, suggesting potential for expansion. However, Kothari notes risks such as increasing competition in the IAM market from major players like Microsoft and Amazon, which could impact Okta’s market position.
In another report released on April 23, Roth MKM also initiated coverage with a Buy rating on the stock with a $119.00 price target.