Okta price target raised to $125 from $115 at Needham

Needham raised the firm’s price target on Okta (OKTA) to $125 from $115 and keeps a Buy rating on the shares. The company’s Q1 results exceeded guidance, though its 14% cRPO – current remaining performance obligations – growth missed expectations, and while the management had previously guided Q1 cRPO to increase 12%, the buy-side ran ahead of itself with projections for 15% given the strong year-to-date increase in the share price, the analyst tells investors in a research note. The cRPO guidance for Q2 contraction to $2.2B-$2.205B is also disappointing, particularly in light of go-to-market initiatives such as Specialization, traction with New Products, and reduced Seat & User Renewal headwinds, Needham added.