Okta Posts Strong Q2 Upside, But Some Analysts Cut Forecasts: ‘Not Firing On All Cylinders’
Shares of Okta Inc (NASDAQ:OKTA) tanked in early trading on Thursday, even after the company reported upbeat second-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- DA Davidson analyst Rudy Kessinger reaffirmed a Neutral rating, while slashing the price target from $100 to $85.
- BMO Capital Markets analyst Keith Bachman maintained a Market Perform rating, while lifting the price target from $100 to $103.
- Scotiabank analyst Patrick Colville reiterated a Sector Perform rating, while reducing the price target from $104 to $92.
- Stifel analyst Adam Borg reaffirmed a Buy rating, while cutting the price target from $122 to $108.
- WestPark Capital analyst Casey Ryan maintained a Buy rating and price target of $140.
- Truist Securities analyst Joel Fishbein reiterated a Hold rating, while reducing the price target from $105 to $95.
- Piper Sandler analyst Rob Owens reaffirmed a Neutral rating, while cutting the price target from $110 to $100.
- RBC Capital Markets analyst Matthew Hedberg maintained an Outperform rating and price target of $125.
Check out other analyst stock ratings.
DA Davidson: Okta reported revenues and earnings of $646 million and 72 cents per share. It beat the consensus of $632.7 million and 61 cents per share, respectively. However, the company’s subscription revenue growth decelerated to 17% year-on-year, from 20% in the previous quarter.
The cRPO (current remaining performance obligation) guidance for the fiscal third quarter came in at $1.99 billion, implying 9% year-on-year growth, missing the consensus of 10% and representing a deceleration from the 13% figure achieved in the fiscal second quarter, Kessinger stated. “Mgmt. noted sales productivity is still not firing on all cylinders, consistent with what we’ve heard in our field …
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