Okta Inc (NASDAQ:OKTA) doesn’t need to do much to beat expectations when it reports third-quarter results on November 29, according to analysts at Jefferies.
The IT services firm is expected to report earnings of $0.30 per share on revenue of $563.14 million, compared to $0 per share on revenue of $481 million a year earlier.
That’s a relatively low bar, Jefferies argued in a note to clients this week. The firm has a $95 price target and Buy rating on Okta, while its stock traded at $70.72 Tuesday afternoon.
“F3Q results are achievable, even if [Okta’s backlog] is challenged from the cyber incident disruption,” the analysts wrote. “...We're more favorable on the set-up given rock-bottom expectations”
The firm is also bullish about Okta surpassing the guidance it issues next week.
“Opening FY25 revenue guidance likely to be conservative (12-13% yoy) but ... OKTA should be able to materially outperform that initial guidance,” the analysts wrote, citing an improving macro environment for the company’s customer identity and access management, along with its privileged access management product launching next month.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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