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Benzinga
Benzinga
Business
Priya Nigam

Why This Analyst Believes Okta Stock Is 'Difficult To Ignore,' Noting An Increase In Cybersecurity Needs

Shares of Okta Inc (NASDAQ:OKTA) have lost 42% over the past six months, while the company’s organic growth remains strong, according to Mizuho Securities.

The Okta Analyst: Gregg Moskowitz upgraded the rating for Okta from Neutral to Buy, while keeping the price target unchanged at $225.

The Okta Thesis: Auth0, which the company acquired last year, has begun contributing and its growth has been robust and better than expected, Moskowitz said in the upgrade note.

“We continue to believe OKTA’s technological and GTM advantages versus most peers are significant, and at 9x CY23E revenue we believe the risk/reward has become difficult to ignore, even amid a tumultuous market,” he added.

“We would also emphasize that the recent Log4j vulnerability and the Ukraine invasion should further heighten the need for strong cybersecurity technology and processes,” the analyst wrote.

He further mentioned that the Customer Identity and Access Management market seems to be gathering momentum and Okta’s exposure “to this attractive market has significantly increased.”

OKTA Price Action: Shares of Okta had risen by 2% to $157 at the time of publication Tuesday.

Photo: Pete Linforth from Pixabay 

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