Okta Set For Strong Growth Despite Short-Term Headwinds: Goldman Sachs Projects 15-20% Subscription Revenue Acceleration In 2024
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst Gabriela Borges has upgraded Okta Inc (NASDAQ:OKTA) to Buy from Sell and increased the price target to $91 from $77. Borges expects Okta's cRPO and ARR to accelerate back to the 15%-20% range following deceleration in the past quarters. The analyst also projects a 23% CAGR for Okta's customer IAM business from 2023-2026, contributing to 10 points of total revenue growth. However, Borges anticipates headwinds related to layoffs and pressurized monthly active users to impact NRR through H2 FY23.
August 14, 2023 | 2:41 pm
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Okta's stock has been upgraded by Goldman Sachs, with an increased price target. The company is expected to see an acceleration in cRPO and ARR, but may face headwinds due to layoffs and pressure on monthly active users.
The upgrade by Goldman Sachs and the increased price target are positive signals for Okta's stock. The expected acceleration in cRPO and ARR also indicates strong growth potential. However, the anticipated headwinds due to layoffs and pressure on monthly active users could negatively impact the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100