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Bank of America remains bearish on Okta, sees 20% downside risk

Published 05/19/2023, 09:42 AM
© Reuters.  Bank of America remains bearish on Okta, sees 20% downside risk
OKTA
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Bank of America analysts reiterated an Underperform rating on Okta (NASDAQ:OKTA) shares heading into the Q1 earnings report that is due at the end of May.

They expect Okta to report revenue of $511 million and a profit per share of 11 cents. This compares to analysts' consensus for EPS of $0.13 on revenue of $510.5M.

“While we do not anticipate any surprises in 1Q results, we continue to flag our concerns around Okta’s ability to reinvigorate growth and expect FY24 cRPO guidance of $1,940 to be reiterated as company specific risks persists,” analysts wrote in a client note.

BofA’s price target of $64 per share implies a 20% downside risk.

“[We] see limited upside to management’s 15% FY24 cRPO growth target.,” they said in a note.

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