© Reuters. Analysts see extra upside in Okta inventory after a post-earnings rally
By Senad Karaahmetovic
Okta (NASDAQ:) inventory may proceed to maneuver greater within the coming weeks regardless of shares already being up over 15% in pre-market Thursday, based on sell-side analysts.
Whereas consensus was in search of Okta to report a $0.24 loss per share for the third quarter, Okta flat earnings. Income elevated by 37% year-over-year to return in at $481 million, beating the consensus estimate of $465.42M. The upside was pushed by a 38% soar in subscription income to $465.9M, simply forward of the consensus of $447.1M.
For this quarter, Okta sees EPS within the vary of $0.09-0.10, considerably higher than the consensus that was in search of a lack of $0.11 per share. Income is seen at $489M (up or down $1M), once more forward of the analyst estimate of $487M.
For FY2023, Okta materially raised its EPS steerage to an anticipated lack of $0.27-0.26 (the prior vary was $0.73-0.70), forward of the consensus of -$0.71. Income is anticipated at $1.84B, up from the prior vary of $1.81-1.82B, and better than the consensus of $1.82B.
BMO analysts see Okta shares starting to “transfer in a constructive path.”
“Whereas we predict Microsoft will proceed to function an overhang for the a number of, we however suppose the a number of is simply too low at current. Our take is that steerage may be very conservative. Therefore, even with our estimates shifting decrease, we’re elevating our goal worth to $69, and we retain our Outperform score,” the analysts mentioned in a be aware.
Mizuho analysts reiterated a Purchase score and a $90 per share worth goal.
“Whereas we acknowledge that OKTA requires investor persistence and that this has clearly turn into a “show-me” story, we would not lose sight of the truth that OKTA stays a frontrunner within the critically vital identification administration market. Furthermore, we discover valuation very compelling at solely ~3.5x and a pair of.5x CY23-24E income,” the analysts wrote.