We initiate on Okta with a Buy Investment Rating and fair value of ~$150, 27% upside. (Link)
Per leading Technology Research firms, Okta is the leader in the IAM industry due to several competitive advantages. As a result, we think Okta is well positioned to take share from competitors due to aggressive investments in its products, which has resulted in a best-in-class offerings. We estimate Okta currently has only a 5% share of the IAM market. The attractive market growth and Okta’s leading position suggest a long runway for growth for Okta. Our DCF and EV/Sales models point to a fair value for the stock of ~$150+. This valuation is supported by Okta’s potentially to be an acquisition candidate for a legacy provider.
Per leading Technology Research firms, Okta is the leader in the IAM industry due to several competitive advantages. As a result, we think Okta is well positioned to take share from competitors due to aggressive investments in its products, which has resulted in a best-in-class offerings. We estimate Okta currently has only a 5% share of the IAM market. The attractive market growth and Okta’s leading position suggest a long runway for growth for Okta. Our DCF and EV/Sales models point to a fair value for the stock of ~$150+. This valuation is supported by Okta’s potentially to be an acquisition candidate for a legacy provider.
Originally published on 12/11/19.
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