Okta price target lowered to $80 from $90 at BMO Capital

BMO Capital lowered the firm’s price target on Okta to $80 from $90 and keeps a Market Perform rating on the shares. The company beat on Q3 earnings, but the deceleration in revenue growth continued and the management is guiding to materially slower growth in FY25, the analyst tells investors in a research note. The recent breach is contributing to a greater reduction in FY25 revenue estimates than we anticipated, but while the FY25 guide seems conservative, given concerns about the potential reputational damage due to several security issues, BMO cannot say with high confidence that the FY25 guide is no worse than 10% growth, the firm adds.