Okta price target raised to $90 from $85 at BMO Capital

BMO Capital raised the firm’s price target on Okta to $90 from $85 but keeps a Market Perform rating on the shares. The company’s Q2 sales growth decelerated, but the downward trend was milder than in the previous quarters, the analyst tells investors in a research note. BMO adds that Okta’s margin expansion continued, with free cash flow margins also expected to achieve mid-teens in FY24, but also warns that while the company’s new product offerings should serve as catalysts in the long run, the stock’s valuation is not as attractive relative to mid-teens top line growth.