Okta (NASDAQ:OKTA) stock is down 7% this morning after the software and access management company reported lackluster forward guidance.
Okta announced a quarterly loss of 18 cents per share compared to earnings per share of 6 cents a year earlier. Its revenue was up 63% year over year to $383 million, thanks to a 64% rise in subscription revenue.
However, Okta said it sees revenue in the current first quarter rising 55%, with full-year sales of $1.78 billion to $1.79 billion working out to a 37%-38% growth rate. That guidance disappointed Wall Street and led to the shares falling today.
Should investors steer clear of OKTA following the company’s latest quarterly print or buy the dip? Here’s what three professional analysts say.
OKTA Stock Price Predictions
- Deutsche Bank has a “buy” rating on OKTA stock and a $195 price target, implying 15% upside.
- Raymond James also has a “buy” rating on Okta and a $260 price target, which would be 53% higher than the current share price.
- Citigroup has a “hold” rating on OKTA stock and a price target of $205 per share, suggesting 20% growth in coming months.
What’s Next for Okta?
Not every analyst has a “buy” rating on OKTA stock. However, most price predictions are higher than where the stock is currently trading, suggesting that Wall Street expects gains over the next 12 months. Among 27 analysts who cover Okta, the median price target is currently $250, which is 47% higher than where the stock is trading right now.
Over the near term, the view is that Okta’s share price has room to run higher.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
