Okta (NASDAQ:OKTA) stock is rising on Monday after Goldman Sachs analyst Gabriela Borges weighed in on the shares.
Starting off with an upgrade, Borges increases shares of OKTA stock from a “sell” rating to a “buy” rating. To put that in perspective, the analysts’ consensus rating for OKTA shares is “moderate buy” based on 36 opinions.
To go along with that upgrade, the Goldman Sachs analyst increased the firm’s price target from $77 per share to $91 per share. That represents a potential upside of 26.1% over the next year. It’s also a bullish price prediction compared to the analysts’ consensus of $87.65 per share.
What’s Behind the OKTA Stock Upgrade?
Here’s what Borges said about Okta in a note to clients obtained by CNBC:
“We note the potential for volatility in the stock around earnings given our view that Street numbers may still see one more quarter of downward revisions. Even on lower revenue, we are 12%/16% above the Street for FY25/FY26 free cash flow as we see the potential for meaningful margin expansion over the next 3 years.”
With today’s upgrade comes some 1.3 million shares of OKTA stock changing hands. That’s closing in on its daily average trading volume of about 2.5 million shares. It also has the company’s stock up 3.4% as of Monday morning.
Investors seeking even more of the most recent stock market news will want to keep reading!
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On the date of publication, William White 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.
