Analyst Keith Bachman from BMO Capital maintained a Hold rating on Okta (OKTA – Research Report) and increased the price target to $130.00 from $105.00.
Keith Bachman has given his Hold rating due to a combination of factors influencing Okta’s current market position. Despite recent improvements in execution and growth in CRPO/RPO, Bachman remains cautious about Okta’s ability to sustain this momentum, particularly in the face of competitive dynamics. The identity market is expected to grow and converge, which could benefit Okta, but the company must continue to execute effectively to capitalize on these opportunities.
Additionally, while Okta’s RPO growth has been robust, with significant year-over-year and quarter-over-quarter increases, Bachman notes that the company’s guidance for the upcoming quarter appears conservative. This cautious outlook is compounded by the seasonal weakness typically observed in the April quarter. Overall, while there are positive indicators for Okta’s future, the potential for limited estimate and multiple upside due to past inconsistent execution justifies the Hold rating.
In another report released on March 4, Piper Sandler also maintained a Hold rating on the stock with a $110.00 price target.