Analyst Note
| Malik Ahmed Khan |We maintain our $76 fair value estimate for no-moat Okta after the firm reported better-than-expected fiscal first-quarter results, offset by management’s commentary on the macroeconomy that continues to weigh on near-term financial results. These macroeconomic headwinds continued to affect Okta’s ability to land new customers and expand existing ones, as customers across the spectrum seek to recalibrate their IT spending in light of the uncertainty. While the near-term outlook is murky, we believe Okta stands to benefit from long-term tailwinds behind increased adoption of identity-based security solutions. With shares selling off sharply after hours, likely due to the elevated pressures mentioned above, we view Okta’s shares as fairly valued.