Latest News

This software stock is ‘too compelling to ignore,’ Guggenheim says in upgrade

0

Now is the time to load up on shares of Okta , Guggenheim said, noting the stock is “too cheap” for investors to ignore. Analyst John DiFucci upgraded Okta to buy from neutral, saying in a note to clients Monday that the software company’s issues will likely continue, but that the stock is trading at attractive levels. “While we recognize the company is facing challenges that could take several quarters to effectively address, we find current valuation levels too compelling to ignore,” he said. “Trading at an [enterprise value to next 12 months] Recurring Revenue multiple of 3.6x, we believe the stock is currently trading below the intrinsic value of a typical software company assuming no growth or declines.” According to DiFucci, product delays and any additional negative headlines related to the company’s security incidents are already priced into the stock. The company suffered a security breach earlier this year from hacking group Lapsus$ . “If the company is able to right the ship over the next couple of quarters, which we expect it can as management is proactively addressing core issues, we believe patient investors will be rewarded,” he said. Despite the upgrade, Guggenheim retained its $65 price target on the stock. That suggests shares could rally more than 44% from Friday’s. Okta shares have shed roughly 80% this year. Shares gained more than 3% in premarket trading. — CNBC’s Michael Bloom contributed reporting

‘The market only cares about taking your money’: YouTube’s Humbled Trader says 90% of day traders fail, but these 3 tips could help you thrive as a trader

Previous article

Airlines face fragile winter, Ryanair CEO says after record summer profits

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News