Okta: Excuses to Sell Vs. Reasons to Buy

Analyst response to the news is tepid, aiding the initial downdraft in stock prices caused by the release.

Within the first 12 hous of the release, two analysts issued price target reductions, but even those reductions reflect a 10% potential upside upside. Since then, analyst sentiment is firming and includes some upgrades. The price target now is a favorable $112, reflecting a nearly 30% potential upside. 

While the technical outlook is not robust, the market is trading within a range with limited downside, and long-term forecasts suggest solid gains for patient investors. The stock trades at a value today, given its growth outlook and earnings quality, and its growth outlook implies a deep value for buy-and-hold investors.

Assuming the company maintains its double-digit earnings growth, it is trading at approximately 16x its 2030 consensus estimate, suggesting it could increase by 50% to 100% over the coming years. It is worth nothing that cybersecurity leaders such as Palo Alto Networks (NASDAQ: PANW), Zscaler (NASDAQ: ZS), and CrowdStrike (NASDAQ: CRWD) trade at significantly higher valuations. 

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The article "Okta: Excuses to Sell Vs. Reasons to Buy" first appeared on MarketBeat.