Another Okta incident raises chance of activism, says Wolfe Research

According to Bleeping Computer, Okta suffered another security incident after its source code was stolen from its private GitHub repository earlier this month, Wolfe Research analyst Alex Zukin tells investors in a research note. The analyst’s initial checks with industry members suggest the lost source code will likely cause more of a public relations problem than an actual impact to Okta’s business. The potential breach follows a similars-tyle incident related to Auth0 that was disclosed in September, and the Lapsus incident from March of this year, Zukin points out. He says that while he’ll continue to monitor the situation, he ultimately believes the news "increases the likelihood of activism and even M&A." Zukin reiterates an Outperform rating on Okta with an $88 price target. Shares of Okta are up 2% to $67.40 in afternoon trading.