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On Monday, Wolfe Research reaffirmed its Outperform rating and $108.00 price target for Okta, Inc (NASDAQ:OKTA), coinciding with Okta’s announcement of leadership changes. The cybersecurity company, currently valued at $16.6 billion and showing strong momentum with a 23% YTD return according to InvestingPro data, declared the appointment of Eric Kelleher as its new President and Chief Operating Officer (COO), a newly created role, while current President of Business Operations, Eugenio Pace, announced his retirement set for March 2025.
Pace, who joined Okta through the acquisition of Auth0, where he was co-founder and CEO, has been instrumental in the company’s operations for the past four years. Kelleher, a veteran at Okta since 2016, previously held the title of President, Customer Experience & Communications. His new position as COO is aimed at spurring growth, upholding the Okta Secure Identity Commitment, and enhancing the company’s status as a leading identity solutions provider.
Wolfe Research highlighted the executive shake-up not merely for the change in leadership but also to remind investors of Okta’s recent activities. Although there was no reiteration of guidance in the latest announcement, the firm pointed out that Okta had reaffirmed its fourth-quarter and fiscal year 2025 guidance the previous week. This reconfirmation followed Okta’s disclosure of a workforce restructuring plan that would affect 3% of its staff.
The move to establish a COO role and the reaffirmation of financial guidance come at a time when Okta is positioning itself for continued growth and market leadership in identity management. The company’s efforts to streamline operations and commit to strategic leadership roles underscore its long-term objectives in the rapidly evolving cybersecurity landscape.
In other recent news, Amazon (NASDAQ:AMZN) Web Services (AWS) and Datadog (NASDAQ:DDOG) have maintained their outlooks despite concerns about growth, according to Bernstein analysts. AWS’s fourth-quarter revenue growth met expectations, but comments about an uneven growth trajectory for 2025 have caused some investor unease. Bernstein analysts suggest AWS could benefit from increased spot prices due to capacity constraints and rising demand. Datadog’s performance may be impacted by AWS’s potential SSO weakness, but Bernstein maintains its Outperform rating and $151 price target for Datadog.
In a recent development, Okta, Inc. has promoted Eric Kelleher to President and Chief Operating Officer (COO), a move aimed at enhancing operational efficiency and driving growth. Kelleher will oversee various teams, including Marketing, Customer First, and Company Operations. The company has also confirmed its financial outlook for the fourth quarter and the fiscal year ending January 31, 2025, despite announcing a workforce reduction of approximately 3% to better support growth-oriented priorities.
Okta’s stock has been upgraded from Sector Weight to Overweight by KeyBanc Capital Markets, with a new price target of $115.00. The upgrade reflects a positive outlook on the company’s prospects within the security sector, particularly in identity security. Meanwhile, Jefferies maintains a Hold rating on Okta’s stock, with a steady price target of $90.00, following the company’s announcement of a workforce reduction.
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