JPMorgan reiterates Neutral on Okta into Q2 report

JPMorgan reiterates a Neutral rating on Okta with a $110 price target into the company’s Q2 earnings report on August 28. OKTA remains well positioned in identity and access management markets but JPMorgan still needs to see better evidence of macro support and sales execution before turning more constructive on the shares, the analyst tells investors in a research note. The firm says that while a focus on improving operating efficiency has provided some support for the stock, it needs to see evidence of better sales productivity and inflection to better growth to support a meaningfully better multiple from current levels. It believes Okta’s new logo growth will remain challenging near-term and does not yet see indications that the macro environment will support material improvement in customer growth or expansion within the company’s installed base with its seat based model.