2024-02-29 11:14:30 ET
It’s not too late to invest in Okta Inc (NASDAQ: OKTA) even though it has rallied some 60% over the past four months, says a Bank of America analyst.
Okta stock could climb to $135
Madeline Brooks double upgraded the identity and access management company from underperform to “buy” this morning after it published a strong Q4 earnings report and issued upbeat future guidance.
Okta stock opened about 20% up today but the BofA analyst is convinced it could continue to rally and hit $135 over the next twelve months. Her price objective suggests another 30% upside from here.
Current valuation reflects overly conservative guidance and doesn’t account for inflection in Enterprise customer growth, a key driver for Okta’s continues growth as a platform cybersecurity company.
You can read the full earnings press release of on this link .
Why else is she bullish on Okta shares?
Brooks sees full-year guidance the Nasdaq-listed firm issued last night as “overly conservative” because customer growth and execution related headwinds are now abating.
Okta Inc ended its Q4 with $1.952 billion of current remaining performance obligations – up 16% versus a 12% increase expected.
The Bank of America analyst is positive on Okta shares also because the recent breach did not hurt the pipeline considering the management said pipeline was strong this year compared to FY24.
Watch here: https://www.youtube.com/embed/v4cALnXIKhI?feature=oembed– a California based company that does not currently pay a dividend yield announced plans of lowering its headcount by 7.0% in early February as Invezz reported here .
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