Okta could have a strong growth runway in its future, if the company’s latest quarterly report is any indication, according to D.A. Davidson. The firm upgraded the identity and access management stock to buy from hold on Monday. It also raised its price target to $125 per share from $90, signaling more than 43% upside. The upgrade came after Okta reported better-than-expected fourth-quarter results, which sent the stock higher by 15% in the premarket. The company also hiked its full-year outlook. OKTA 5D mountain OKTA rallies “Double-digit growth now seems durable,” analyst Rudy Kessinger wrote. “[Management] repeatedly characterized the qtr. as a ‘blowout’ & spoke more positively about the business than we have heard in years.” “Sales productivity reached a multi-year high, DBNRR [dollar-based net retention rate] is stabilizing, enterprise & channel contribution are picking up, newer products are contributing more meaningfully, and more,” the analyst added. Kessinger wasn’t the only one who upgraded Okta after the company’s earnings. Mizuho’s Gregg Moskowitz changed his rating to outperform from neutral and hiked his price target to $127 from $110. “Mgmt emphasized that the macro environment was largely unchanged this quarter. That said, OKTA clearly executed better this quarter, and mgmt cited a ‘blowout quarter’ with record bookings,” he said.
