Hashi Has Ingredients To Insulate It From Slowdown, However It's Not immune, Analyst Says

  • Needham analyst Alex Henderson reiterated Hold on HashiCorp, Inc HCP.
  • HCP has seen considerable pressure, as it expects maximum margin pain in FY3Q. This style of "growth at all costs" is out of favor, he noted. 
  • As the economy slows and spending tightens, Hashi's strategic positioning, Open Source orientation, and controlled growth strategy should insulate it from the macro slowdown, he believes, but it's not immune. 
  • He thinks Hashi will temper spending in this environment, and this, in turn, supported by rearview mirror investments, should allow more operating margin leverage and a narrowing of EPS losses. 
  • Like Okta, Inc OKTA, he thinks the Street may like this outcome.
  • He thinks it's too early to step up as the projected losses are daunting even if they narrow more rapidly.
  • Also ReadOkta Stock Can Move In Positive Direction Despite Challenges, Analysts Say
  • Price Action: HCP shares traded lower by 1.86% at $26.94 on the last check Monday.
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