© Reuters. Okta (OKTA) faces competitive pressure: Mizuho says fundamental questions still remain
Mizuho analysts cut shares of Okta, Inc. (NASDAQ:) to Neutral from Buy in a note Monday, keeping an $85 per share price target on the stock.
Analysts told investors that the firm has decided to move to the sidelines on OKTA as fundamental questions still remain.
“On the positive side, OKTA remains a clear leader in the critically important identity management market, and valuation is undemanding,” states the analysts.
“At the same time, OKTA continues to face increasing competitive pressure from MSFT, its execution has been choppy, and its latest security incident adds to the uncertainty,” they argue.
Furthermore, analysts note that OKTA shares have risen 23% since the company’s disappointing earnings call in late November. Overall, with the stock trading close to the firm’s $85 price target, and given that they “lack confidence in a meaningful fundamental turnaround,” the analysts said they are moving to the sidelines.
