Okta assumed with a Buy at Needham

Needham assumed coverage of Okta with a Buy rating and $100 price target Okta has experienced a “meaningful headwind” to growth resulting from seat expansion pressures as customers’ purchasing behavior has changed in the current macroeconomic environment, the analyst tells investors in a research note. However, the firm believes the company is through the majority of the renewal cycle and existing customer pressure should abate. In addition, it views Okta’s go-to-market initiatives via sales incentives and partners as “rounding out the playbook to reaccelerate growth while providing additional margin leverage.”