Wedbush starts Okta at Outperform on ‘extremely conservative’ outlook

Wedbush analyst Taz Koujalgi last night initiated coverage of Okta with an Outperform rating and $86 price target. Okta is a leader in the software-as-a-service identity space with a broad portfolio of products spanning both workforce identity and customer identity use cases, Koujalgi tells investors in a research note. The company has a guided to a steep decline in fiscal 2024 revenue growth, but an analysis shows the outlook is "extremely conservative," says the analyst. Even with 20% decline in "new business" there is a fair amount of upside to the revenue guide, contends Koujalgi.