William Blair analyst Jonathan Ho has maintained their bullish stance on OKTA stock, giving a Buy rating today.
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Jonathan Ho’s rating is based on Okta’s strong quarterly performance, highlighted by a 13% growth in current remaining performance obligations (cRPO), which exceeded both the firm’s and market expectations. The company has also increased its full-year revenue guidance, reflecting a robust first half of the year and a reduction in uncertainties related to macroeconomic factors and U.S. federal government contracts.
Additionally, the acquisition of Axiom Security enhances Okta’s position in the AI security space, although it is not expected to immediately impact financial metrics. The company’s focus on consolidating identity solutions and the specialization of its salesforce has led to a record pipeline of opportunities. Furthermore, Okta’s impressive free cash flow generation and increased operating income guidance underscore its strong profitability, contributing to the positive outlook.
According to TipRanks, Ho is a 4-star analyst with an average return of 8.8% and a 53.08% success rate. Ho covers the Technology sector, focusing on stocks such as Okta, Fastly, and Akamai.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $142.00 price target.