Okta downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Brad Zelnick downgraded Okta (OKTA) to Hold from Buy with a price target of $85, down from $115. While not an explicit call on the company’s fiscal Q3 results, feedback on Okta has been more mixed of late and the path to realizing value may still be several quarters away, “perhaps making it more interesting deeper into next year,” the analyst tells investors in a research note. The firm says that aside from the ongoing macro-driven seat and monthly active user headwinds, it found the compounding effects of its numerous breaches and competition are weighing on customer expansion and new logo acquisition. Accordingly, Deutsche believes Street estimates are likely too high for next year.