© Reuters. Jefferies downgrades Okta (OKTA) following security incident
Jefferies downgraded Okta, Inc. (NASDAQ:) to a Hold rating (From Buy) but raised their 12-month price target on the stock to $95.00 after the cybersecurity company’s shares reached Jefferies’ previous $85.00 price target.
Jefferies analysts consider the new $95 price target as suitable, especially considering the risks related to the cyber incident being worse than initially anticipated.
A recent report about the Okta hack reveals that hackers not only accessed but also downloaded a report containing customer information, impacting almost all of Okta’s customers. Initially, it was believed that only 1% of customer information was compromised, but this new information suggests a much broader and significant impact on Okta’s clientele.
“While we still view OKTA as a great technology, we expect upside will be more muted than in past years as PAM takes longer to ramp than IGA while NRR remains suppressed NT due to the incident.” Wrote Jefferies analysts in a note.
Shares of OKTA are trading up 0.16% Friday morning.
