TECH - Okta's Security Breach Takes A Toll Despite Q3 Beat Analysts Divided | Benzinga
Needham analyst Alex Henderson reiterated Okta Inc (NASDAQ: OKTA) with a Buy and a $100 price target. Okta announced that the October breach impacted more customers and systems than initially indicated before Okta's scheduled release; the stock sold off on this news.
However, consistent with his preview, the original breach does not appear to have impacted results, and despite cautious commentary from most of the Street, Okta's 21% revenue growth beat guidance and the consensus by 4%, and management raised the FY24 outlook.
Accordingly, the washed-out shares rose on this news. Henderson expects Q4 revenue of $585.9 million and Adj. EPS of $0.50.
Scotiabank analyst Patrick Colville downgraded Okta from Sector Outperform to Sector Perform. The analyst noted that Okta is the innovation leader in workforce and customer identity management.
However, the analyst is concerned that the expanded scope of the customer support management breach could make it more difficult to engage new logos, increase churn slightly, and impact the effectiveness of cross and upsell efforts.
Okta's new 10% FY25 revenue growth target is unlikely to be revised upwards, and don't expect a reacceleration even if IT spending recovers. Colville expects Q4 revenue of $586 million.
RBC Capital analyst Matthew Hedberg maintained an Outperform and lowered the price target from $100 to $95.
Okta delivered solid Q3'24 results in a stabilizing macro environment as FY24 guidance moved higher, though cRPO guidance ...