Analyst Shaul Eyal of TD Cowen maintained a Hold rating on Okta, retaining the price target of $115.00.
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Shaul Eyal has given his Hold rating due to a combination of factors influencing Okta’s current market position. Despite Okta’s strong second-quarter results, which included a 13% year-over-year revenue growth and a significant increase in remaining performance obligations, Eyal maintains a cautious stance. The company’s performance was bolstered by large customers, new products, and a solid showing in the public sector, yet the decision to maintain a Hold rating reflects a balanced view of both opportunities and challenges.
Okta’s strategic moves, such as the acquisition of Axiom Security, and its improved sales productivity, highlight its potential for future growth. However, Eyal’s Hold rating suggests that while the company is performing well, the current valuation and market conditions do not warrant a more aggressive Buy recommendation. The target price of $115, based on an enterprise value to revenue ratio, indicates that the stock is fairly valued at present, justifying the Hold rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $100.00 price target.