Kim Bolton
Okta, Inc.
OKTA-Q
TOP PICK
Jan 29, 2025
Referring to the dartboard chart from the top of the show, this one's in the second ring of IAM -- identity and access management. Leader in that space for 8 years in a row. King of the double authentication.
Pretty high-margin business. Just achieved GAAP profitability, making $$ that they can actually bank. Focus this year will be on profit-margin expansion. 12-month target of $105. Buy 1/3 here around $92, low $90s, and mid-$80s. No dividend.
This cybersecurity stock has hung on during this harsh tech sell-off. OKTA has plunged 74% from last year's peak. Offers great revenue growth. Has rebounded since the trough mid-last month, helped by a clean quarterly beat last week. The PE is much more reasonable.
Cybersecurity. Leader in identity access management. Reported last week, top and bottom lines were strong. Problem was tepid guidance for Q3 regarding integration of an acquisition. Negatives are operational, not about the business. (Analysts’ price target is $108.00)
(A Top Pick Oct 18/21, Down 75%) He sold in February/March after holding for 4 to 5 months. It had some company specific problems including a security breach even though it is cyber security company. Because of attrition in sales it is having difficulty keeping some of its sales people. Non-profitable tech got hit hard this year.
Delivered a beat and raised guidance, but the street focussed on the amount of business they have not done, a number which missed expectations. The street sees slowing business ahead. Doesn't help that shares were hot going into the quarter.
Has been following company closely. Identity verification a good space to be in. Heavy competition from Microsoft etc. Potential for company to be bought. "Show and prove" story for investors. Waiting for results before buying.
Reported two weeks ago: great numbers with a clean beat and raised their quarter. Shares popped and can continue to rise, but a recent major hack involved cracking a company network by breaking into an employee's Okta logging credentials.
Privacy breach. Has to earn back respect from the marketplace, because a lot of people got burned. 12-month price target of $118. Wait for earnings to come out and see if it can repair damage to its integrity.
Claim to fame is it's one of the leaders in identity and access management. Cloud-based software solution. Allows developers to build ID controls into apps and websites. 12-month target of $102.25. Buy here around $90, at $86.25, and shouldn't go below $80.
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Referring to the dartboard chart from the top of the show, this one's in the second ring of IAM -- identity and access management. Leader in that space for 8 years in a row. King of the double authentication.
(Analysts’ price target is $103.03)Pretty high-margin business. Just achieved GAAP profitability, making $$ that they can actually bank. Focus this year will be on profit-margin expansion. 12-month target of $105. Buy 1/3 here around $92, low $90s, and mid-$80s. No dividend.