In a report released yesterday, Kingsley Crane from Canaccord Genuity maintained a Hold rating on Okta (OKTA – Research Report), with a price target of $94.00.
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Kingsley Crane has given his Hold rating due to a combination of factors regarding Okta’s current market position and financial strategies. The company has recently undergone a 3% reduction in workforce, which is seen as a regular annual adjustment rather than an indication of significant change. This layoff, though part of an effort to improve operational efficiency, is relatively minor in comparison to previous years and is expected to lead to annualized savings that should slightly boost operating margins by FY26.
Despite this, Okta’s growth prospects remain uncertain due to plateauing margin expansion and declining net revenue retention. While the company has a robust long-term potential in the identity sector and is strategically focusing on large enterprises and new products, there is still a lack of clarity on whether these growth initiatives will be successful. The reaffirmation of guidance and neutral market reaction suggest that investors are cautious, awaiting more tangible evidence of Okta’s growth strategy taking effect before upgrading the stock rating.
According to TipRanks, Crane is a 4-star analyst with an average return of 10.1% and a 60.84% success rate. Crane covers the Technology sector, focusing on stocks such as Dynatrace, Okta, and BlackBerry.
In another report released today, Barclays also maintained a Hold rating on the stock with a $96.00 price target.