Okta Stock Goes up After an Upgrade From Oppenheimer, Which Cites “Satisfied Customers”

Okta Stock

Okta Stock (NASDAQ:OKTA)

Monday morning, before the stock market opened, Okta (NASDAQ:OKTA) shares increased slightly. This was because Oppenheimer upgraded the IT service management company, saying that a survey showed “generally happy customers.”

Analyst Adam Borg upped his recommendation on Okta stock to buy from hold and boosted the per-share price target to $90 from $60. He said that the poll of 37 customers, 80 percent of whom spend more than $100,000 per year with Okta, revealed that they are interested in the company’s swim-lane convergence approach and the company’s identity governance and administration and privileged access management potential. In addition, the analyst lifted the per-share price target to $90 from $60.

Borg pointed out that Okta (NASDAQ:OKTA) still has a significant amount of work to implement its go-to-market strategy. This work includes addressing attrition in the customer service sector and turnover in management. In addition, the identity access management industry is “extremely competitive,” Even though fourth-quarter checks were below expectations and investor sentiment is mixed, Okta still has chances in front of it (NASDAQ:OKTA).

Borg published a letter to clients in which he said, “… [W]e think that all of this generates a good set-up and risk/reward as Okta steadies execution against previously de-risked [calendar 2023] top-line guidance and produces substantial operating/FCF margin improvements in future years.”

After digging further into the study, Borg observed that 90% of Okta’s (NASDAQ:OKTA) customers rank their contentment as either a 4/5 or a 5/5 but that there are low prospects for growth in 2023. As a result, 68% of Okta’s customers anticipate that their expenditure with Okta (NASDAQ:OKTA) will either remain the same or rise between 0% and 10% year over year in 2023.

At the beginning of this month, rumors began to circulate that activist investors could set their sights on Okta stock.

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