Okta price target lowered to $138 from $140 at Guggenheim

Guggenheim lowered the firm’s price target on Okta (OKTA) to $138 from $140 and keeps a Buy rating on the shares. Headline results exceeded consensus estimates, but “the report looks challenging upon further inspection,” the analyst tells investors. None of the fiscal Q1 beat was flowed through to the full year guidance, which was maintained and described as “prudent” given the heightened uncertainty in the selling environment, and while management repeatedly said they were off to a good start with a “solid” Q1, “the results didn’t look that way to us given a decline in business momentum,” the analyst added. However, “it’s easy for us to stick with a Buy here even if the stock suffers over the short-term,” given the current valuation, the firm says.