With an expanding product portfolio, Okta Inc OKTA is poised to gain a share in the growing market for identity and access management (IAM), estimated at $40 billion, according to Morgan Stanley.
The Okta Analyst: Hamza Fodderwala upgraded the rating for Okta from Equal-Weight to Overweight, while raising the price target from $275 to $315.
The Okta Thesis: After prioritizing work-from-home functionality over the past year, enterprises are now “refocusing on larger, strategic initiatives to modernize their IAM infrastructure in order to secure a larger remote workforce,” Fodderwala said in the upgrade note.
“This should translate to larger deal sizes and more rapid share gains for Okta, as more enterprise budget becomes available to upgrade and displace legacy on-premise solutions. As a result, we see durable >30% topline growth in Okta's core Workforce Access Management segment over the next few years,” the analyst wrote.
“We believe growth is now stabilizing and should prove more durable vs. consensus view as demand improves, setting up for more meaningful revisions to both near and longer-term estimates,” he added.
OKTA Price Action: Shares of Okta had declined by 1.85% to $236.99 at the time of publication Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
