BofA starts Okta at Underperform with ‘no positive catalysts in sight’

BofA analyst Madeline Brooks initiated coverage of Okta (OKTA) with an Underperform rating and $64 price target. The Street is modeling 18% revenue growth over the next two years, but BofA thinks this is "too optimistic" and model growth of 16%, stating that it sees elevated risks of slow growth and limited margin upside given intense competition with Microsoft (MSFT). Even after the 60% decline over the last 12 months, the firm expects Okta shares to underperform and it sees "no positive catalysts in sight."