"Raymond James upgraded Okta to Outperform from Market Perform, setting a price target of $85, highlighting the company's recent profitability despite a significant stock decline from $200 to $71."
"The firm noted that Okta's net revenue retention has decelerated from over 120% to 106% due to downsizing renewals from COVID-era cohorts, but believes this headwind is fading."
"Raymond James sees AI as a meaningful tailwind for Okta, suggesting that the launch of Auth0 for AI Agents positions the company as a leader in securing identities across various platforms."
"KeyBanc analyst Eric Heath expressed caution, trimming Okta's price target to $95, citing mixed survey results and a trend of partners reducing software spend in favor of AI-native solutions."
Okta's stock was upgraded to Outperform by Raymond James, with a target of $85, after falling from $200 to $71. The company has achieved profitability, but net revenue retention has decreased due to COVID-era license overprovisioning. Raymond James believes this headwind is fading, as contracts cycle off. The firm sees AI as a growth catalyst, with Okta launching Auth0 for AI Agents. However, KeyBanc has a more cautious outlook, citing mixed survey results and a shift towards AI-native solutions among partners.
Read at 24/7 Wall St.
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