Fatima Boolani, an analyst from Citi, maintained the Hold rating on Okta. The associated price target remains the same with $110.00.
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Fatima Boolani’s rating is based on Okta’s strategic focus on expanding its portfolio to address emerging opportunities in AI and identity security. The company is working to enhance its market perception by aligning its offerings with the growing demand for security in AI applications. However, despite these efforts, Okta’s current market position is overshadowed by competitors like CyberArk and SailPoint, which are perceived to have more credibility in this domain.
While Okta has made significant progress in improving its operational rigor and go-to-market strategies, there remains a cautious outlook among investors. The company’s recent growth deceleration and the need for a more convincing demonstration of its turnaround efforts contribute to the Hold rating. Okta’s potential for future growth is acknowledged, but the immediate outlook does not suggest a significant positive shift in fundamentals or demand trends that would warrant a more optimistic rating.
In another report released on October 3, TD Cowen also maintained a Hold rating on the stock with a $115.00 price target.