Okta ( NASDAQ: OKTA ) shares rose almost 4% Wednesday even though D.A. Davidson analyst Rudy Kessinger cut his rating on the identity software company due to concerns about issues such as rising competition and increasing sales turnover.
Kessinger lowered his rating on Okta ( OKTA ) to neutral from buy saying that while the company beat its first-quarter revenue forecasts, its outlook for revenue growth could have been better. Kessinger said that Okta’s ( OKTA ) forecast suggested the company is seeing some impact of sales turnover following the integration of its sales team with that of Auth0, which Okta ( OKTA ) in 2021.
“[We have] heard that the integration has caused a great deal of confusion and frustration with current and prospective clients, with customers getting bounced around between different sales reps,” Kessinger said.
Kessinger also lowered his price target on Okta’s ( OKTA ) stock to $105 a share from $140.
Wall Street analysts and Seeking Alpha authors each have a consensus buy rating on Okta’s ( OKTA ) stock. However, Seeking Alpha’s quant system, which regularly beats the market, has Okta ( OKTA ) with a share rating of hold .
For further details see:Okta shares rise 4% despite rating but by D.A. Davidson