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Fly News Breaks for June 27, 2018
OKTA
Jun 27, 2018 | 07:05 EDT
As reported earlier, Needham analyst Alex Henderson upgraded Okta to Buy from Hold with a $58 price target, saying his prior downgrade was based on valuation rather than fundamentals while citing the pullback in the stock price following its Q1 earnings report. Henderson notes that revenues in Q1 met "sky-high" expectations, while the 60% increase in billings was "solidly ahead". The analyst states that Okta's valuation premium at 13.3-times his enterprise value to expected FY19 sales multiple vs. 9.2-times for its peer group is justified given its growth profile.