Analysts rate Okta Inc. (OKTA:NSD) with a Strong Buy rating and a $163 target

STA Research
by: STA Research
Okta Inc

Based on the Okta stock forecast from 26 analysts, the average analyst Okta stock price target is USD 163.79 over the next 12 months. Okta Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Okta stock forecast is Neutral, which is based on 4 positive signals and 4 negative signals.

At the last closing, Okta stock price was USD 91.40Okta stock price has changed by -5.23% over the past week, -7.05% over the past month and -65.48% over the last year.

 

About Okta Inc. (OKTA:NSD):

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally.

The company offers Okta Identity Cloud, Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data.

It offers customer support, training, and professional services. It sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

Okta stock price has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Superior Revenue Growth:

Okta stock forecast shows that the stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced on cashflow basis:

Okta stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Okta stock forecast shows that the stock has shown below median earnings growth in the previous 5 years compared to its sector

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