Okta's Security Breach Takes A Toll Despite Q3 Beat, Analysts Divided
Portfolio Pulse from Anusuya Lahiri
Okta Inc (NASDAQ:OKTA) experienced a security breach that was more extensive than initially reported, impacting customer support systems and potentially affecting customer engagement and sales. Despite this, Okta reported a 21% revenue growth in Q3, beating guidance and consensus, and raised FY24 outlook. Analysts are divided on the stock, with price targets ranging from $70 to $100. Concerns over the breach's impact on future growth and customer retention are prevalent, with some analysts downgrading their ratings and price targets. Q4 revenue expectations are consistently around $586 million, with adjusted EPS estimates near $0.50-$0.51.
November 30, 2023 | 7:47 pm
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Okta's security breach revelation may negatively impact customer trust and sales, despite a strong Q3 performance and raised FY24 outlook. Analysts have mixed views, with some downgrading the stock and lowering price targets.
The security breach is a significant event that could undermine customer confidence and sales, which is critical for Okta's future growth. Although Q3 results were strong, the breach's impact on the company's reputation and potential sales challenges are likely to weigh on the stock in the short term. Analysts' divided opinions and lowered price targets reflect the uncertainty and potential negative impact on Okta's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100