Mike Cikos, an analyst from Needham, maintained the Buy rating on Okta (OKTA – Research Report). The associated price target remains the same with $115.00.
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Mike Cikos has given his Buy rating due to a combination of factors related to Okta’s strategic decisions and financial outlook. The company has announced a restructuring plan aimed at enhancing its growth initiatives, which includes a 3% reduction in workforce. This move is expected to result in significant cost savings, estimated between $30 million to $35 million, which should positively impact the operating margin by approximately 110-130 basis points in the fiscal year 2026.
Furthermore, Okta’s management has reaffirmed its guidance for the fourth quarter of fiscal year 2025, suggesting confidence in its ongoing financial performance. While there may be some variation in net savings depending on future investments, the overall financial strategy positions Okta well for continued growth. These factors collectively support the Buy rating as they indicate a potential for improved profitability and sustained expansion in the near future.
Cikos covers the Technology sector, focusing on stocks such as Okta, Zscaler, and Dynatrace. According to TipRanks, Cikos has an average return of 14.9% and a 62.00% success rate on recommended stocks.