Okta initiated with a Sell at Goldman Sachs

Goldman Sachs analyst Gabriela Borges initiated coverage of Okta with a Sell rating and $70 price target. The analyst believes emerging software industry dynamics are favorable for long-term investors. Multi-product platforms have gained momentum, the industry is less cyclical, and unit economics outperform broader software, Goldman tells investors in a research note. However, for Okta, the analyst expects the pace of its share gain in identity access management to slow, saying Microsoft is becoming slightly more competitive and the identity cloud upgrade cycle being further along.