Macquarie initiates coverage on Okta with 'outperform'

Macquarie initiates coverage of digital identity verification firm Okta OKTA.O with 'outperform' rating and $100 PT

The brokerage sees many levers like longer-term

contracts and go-to-market changes, for top-line acceleration, which could be a catalyst for expansion of the company's relatively low trading multiples

Macquarie also sees Okta facing intense competition from Microsoft, which the brokerage said OKTA counters with its positioning as the leading independent vendor for diverse IT environments

"Adoption of agentic AI could represent a significant

new opportunity in the identity space, as enterprises need to protect non-human identities (NHIs)" the brokerage said, adding that a major focus of OKTA's current roadmap is securing the AI-driven enterprise through an identity security fabric

Up to last close, stock has fallen 9%