Analyst Peter Weed from Bernstein maintained a Buy rating on Okta (OKTA – Research Report) and keeping the price target at $132.00.
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Peter Weed has given his Buy rating due to a combination of factors that suggest Okta’s current challenges may not be as detrimental as they appear. Despite a recent drop in Okta’s stock price following earnings, Weed notes that the company’s demand signals remain robust, with stable churn rates, consistent up/cross-sell opportunities, and a strong quarter for net new customers.
Weed acknowledges concerns about the cRPO coverage ratio, which has declined, raising investor worries about potential demand weakness. However, he argues that this decline is expected due to the natural lapping of previous contract downsells and should normalize as the year progresses. Additionally, the company’s conservative guidance, considering macroeconomic factors and specific headwinds like DOGE, is seen as a prudent approach, reinforcing the Buy rating.
According to TipRanks, Weed is a 4-star analyst with an average return of 13.9% and a 62.64% success rate. Weed covers the Technology sector, focusing on stocks such as Okta, Zscaler, and ServiceNow.
In another report released on May 28, Goldman Sachs also maintained a Buy rating on the stock with a $137.00 price target.