Okta Stock Jumps 8% After Company Meets With Analysts. Heres Why.
Summary
Okta shares are trading sharply higher Thursday, one day after the company met with investors in connection with its latest users’ conference. At yesterday’s event, the company announced a new service called Okta Privileged Management, which controls the level of access to specific resources provided to individual users; it noted in unveiling the software that credentialing issues played a role in the recent SolarWinds hack. BTIG analyst Gray Powell keeps his Neutral rating on Okta shares, but says the event “was positive” and that he was pleased to see the company reiterate its guidance, with the potential for growth of better than 35% including Auth0. He also think the privileged management and identity governance announcements “make sense.… [We] see these markets as natural expansion opportunities.” Baird analyst Jonathan Ruykhaver, who is Neutral-rated on the stock, had a similar reaction to the event. “Growth is clearly management’s top priority, which we appreciate given the company’s strong market positioning and sizable potential TAM.,” he writes.
