Okta risk/reward attractive amid low expectations, says Jefferies

Jefferies analyst Joseph Gallo lowered the firm’s price target on Okta to $80 from $90 and keeps a Buy rating on the shares into the fiscal Q3 results. The consensus billings growth estimate of 26% year-over-year is achievable although upside is unlikely following "mediocre checks," Gallo tells investors in a research note. However, the analyst believes lowered expectations create an "appealing set up" for Okta shares into the Q3 print. If the company simply meets consensus provides a framework to 20%-plus revenue growth in fiscal 2024 and improving margins, the shares should work, says the analyst.