This Cloud Security Company Got Attractive As Its Peers Went Private, Analyst Upgrades Stock

Author: Anusuya Lahiri | November 07, 2022 01:09pm

Guggenheim analyst John Difucci upgraded Okta Inc (NASDAQ:OKTA) from Neutral to Buy with a $65 price target.
While he recognized the company is facing challenges that could take several quarters to address effectively, he found current valuation levels too compelling to ignore.
He believed the stock is currently trading below the intrinsic value of a typical Software company assuming no growth or declines and more than pricing in issues surrounding salesforce attrition, product delays, C-suite turnover, and negative headlines concerning security incidents.
Also Read: Okta Analyst Knocks Off Price Target By 13%, Courtesy Microsoft
Okta was viewed as the premier asset in the Access Management space, and competitors in the space – ForgeRock, Inc (NYSE:FORG) and Ping Identity Holding Corp were taken private.
While his upgrade is not necessarily based on the potential of a similar outcome for OKTA, he saw current levels offering asymmetrical risk and reward with little downside and significant upside potential.
Morgan Stanley analyst Hamza Fodderwala maintained Okta with an Equal-Weight and lowered the price target from $93 to $65.
Price Action: OKTA shares traded higher by 0.67% at $45.32 on the last check Monday.