Why Wells Fargo Is Bullish On Okta

Okta Inc (NASDAQ: OKTA) is likely to generate growth at or above 35% for the foreseeable future given its comprehensive identity security platform, according to Wells Fargo.

The Okta Analyst: Andrew Nowinski initiated coverage of Okta with an Overweight rating and a price target of $275.

The Okta Takeaways: The company’s identity security platform has a competitive advantage, since there are no other cloud-based platforms spanning all elements of identity security, Nowinski said in the initiation note.

“We believe this competitive advantage will lead to accelerating share gains and ultimately drive revenue and free cash flow growth above current expectations,” the analyst said. 

“We believe Auth0 not only accelerates growth within the CIAM market, but the developer framework of Auth0 enables limitless application integrations,” Nowinski said, adding that Okta’s core business (ex-Auth0) was accelerating, despite the guidance for the fourth quarter of 2022 suggesting decelerating growth.

OKTA Price Action: Shares of Okta have lost almost 12% over the last five trading days. The stock was up 2.5% at $203.54 late Thursday morning.