OKTA Stock Slips Premarket: Piper Sandler Cuts Price Target On Signs Of Slowing Growth
Synopsis
Okta’s stock dropped 4% in Wednesday’s premarket trading despite Q3 metrics beating estimates, as the firm highlighted concerns about slowing growth in key metrics. Okta’s stock dropped 4% in Wednesday’s premarket trading despite Q3 metrics beating estimates, as the firm highlighted concerns about slowing growth in key metrics.
- Piper Sandler said growth in contract‑valued backlog (cRPO) slowed, and subscription‑revenue expansion lost steam.
- The firm slashed the price target to $95 from $110.
Okta Inc. (OKTA) has drawn scrutiny from Piper Sandler after its third‑quarter earnings prompted the firm to reduce the 12‑month price target to $95 from $110.
Okta’s stock dropped 4% in Wednesday’s premarket trading despite Q3 metrics beating estimates, as the firm highlighted concerns about slowing growth in key metrics.
Why The Price Target Cut?
Although the quarter outperformed expectations, Piper Sandler flagged weakening momentum in key metrics. Growth in contract‑valued backlog (cRPO) slowed and subscription‑revenue expansion lost steam.
On top of that, guidance for the fourth quarter appeared cautious, and the company projected a soft revenue outlook for the upcoming fiscal year, the firm said.
On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory, and message volume improved to ‘extremely high’ from ‘high’ levels in 24 hours.
Get updates to this developing story directly on Stocktwits.<
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