Okta Inc. shares rose to a fifth straight profit on Wednesday after Raymond James analyst Adam Tindle said he was more than optimistic about the cloud software company and said Wall Street was after a "perfect one." Storm of Negativity ”punished enough this year.
Tindle upgraded its rating to Strong Buy after starting coverage of Okta with an outperform rating in April. He raised his target price to $ 310, up about 19% from its current $ 300 level.
rose 5.2% in afternoon trading and is now up 13.8% in the past five days. The stock that was well on its way to its highest price since Jan.
is up 10.8% and the S&P 500 index
has increased by 19.8%.
Among the issues that weighed on the stock this year, Tindle said, was the completion of the $ 6.5 billion acquisition of AuthO, which was viewed as a defensive move; a second change in CFO position and a sharp drop in relative valuation.
"Although the market has penalized the stock, our work, through proprietary surveys at recent industry events and strategic discussions with senior sales executives (due to our supply chain coverage) suggests that this former angel has fallen far enough and should regain his wings," Tindle wrote in a customer note.
Among the reasons for his increased conviction:
An acceleration of organic trends as surveys suggest Identity Access Management (IAM) is one of the top three areas of future spending for customers.
A turn in the secure customer identity and access management (CIAM) market as channel audits indicate that the number of stores and the size of the stores are increasing.
New hires in senior management indicate a “strong talent pool” for an upcoming new CFO.
A "reassessment" in the evaluation, in the core acceleration alongside beta products for the second half of 2021 in the areas of Privileged Access Management (PAM) and Identity Governance and Administration (IGA), where reviews indicate customer desire for consolidation .
“While we've been biding our time since we started reporting earlier this year due to our under-street model at the time, Okta has since cleared the decks and now it's time to be one step ahead of the catalytic converter wave beginning with our over-street model. Street model in 2Q results, ”wrote Tindle.
Okta is expected to publish its second quarter results on September 1st after the closing bell. Tindle expects adjusted earnings per share of 7 cents for the quarter, while the FactSet consensus predicts a loss of 35 cents per share.