Raymond James upgraded Okta (OKTA) to Outperform from Market Perform with an $85 price target The shares have dropped from $200 in fiscal 2023 to $60 today as the company’s net retention revenue decelerated from over 120% to 106% due to downsized renewals from COVID cohorts that overprovisioned, the analyst tells investors in a research note. The firm sees this headwind for Okta subsiding as the company’s average contract duration is just under three years. Raymond James says its analysis of various metrics suggests a “forward waterfall that should result in upside to growth” for Okta. It also believes AI has the potential for a significant total addressable market increase for Okta’s core market due to agents in the workforce.
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