Selected stock price target news of the day - August 30th, 2024

By: Matthew Otto

Okta’s Q2 Results Beat Expectations, But Growth Concerns Loom

Okta delivered financial results for the second quarter of fiscal year 2025, reporting earnings per share (EPS) of $0.72, surpassing the consensus estimate of $0.61 by $0.11. Revenue for the quarter totaled $646 million, outperforming the market’s expectation of $632.6 million.

Okta revenue growth was primarily driven by customers, with its $1 million-plus annual contract value (ACV) customer segment showing the fastest growth. Okta also noted that over 40% of the Global 2000 companies now utilize Okta’s identity solutions.

For the third quarter of fiscal 2025, Okta projects total revenue in the range of $648 million to $650 million, reflecting an 11% year-over-year growth rate. Anticipates current remaining performance obligations (RPO) between $1.985 billion and $1.990 billion, a 9% increase from the previous year. Non-GAAP operating income is expected to be between $118 million and $120 million, translating to an operating margin of 18%. Okta also forecasts non-GAAP diluted net income per share to be in the range of $0.57 to $0.58.

For the full fiscal year, Okta has raised its revenue guidance to $2.555 billion to $2.565 billion, representing a 13% year-over-year growth. Expects a non-GAAP operating income of $535 million to $545 million, yielding an operating margin of 21%, and a non-GAAP free cash flow margin of approximately 23%.

Analysts Adjust Price Targets Amid Ongoing Challenges

Citigroup analyst Fatima Boolani maintained a Neutral rating but lowered the price target from $115 to $110.
Jefferies analyst Joseph Gallo kept a Hold rating and reduced the price target from $110 to $100.
Canaccord Genuity analyst Richard Davis maintained a Hold rating and lowered the price target from $95 to $90.
Stifel analyst Adam Borg reiterated a Buy while reducing the price target from $122 to $108.
DA Davidson analyst Rudy Kessinger maintained a Neutral stance, cutting the price target from $100 to $85.
BMO Capital analyst Keith Bachman held a Market Perform rating and raised the price target slightly from $100 to $103.
JP Morgan analyst Brian Essex maintained a Neutral rating and lowered the price target from $110 to $105.
Piper Sandler analyst Rob Owens kept a Neutral rating and reduced the price target from $110 to $100.
RBC Capital analyst Matthew Hedberg reiterated an Outperform rating and a price target of $125.
Goldman Sachs analyst Gabriela Borges held a Buy rating but reduced the price target from $130 to $113.
Truist Securities analyst Joel Fishbein reiterated a Hold rating while lowering the price target from $105 to $95.
Scotiabank analyst Patrick Colville maintained a Sector Perform rating and cut the price target from $104 to $92.
WestPark Capital analyst Casey Ryan reiterated a Buy rating and the price target at $140.
UBS analyst Roger Boyd maintained a Buy rating and lowered the price target from $120 to $108.

Which Analyst has the best track record to show on OKTA?

Analyst Peter Levine (EVERCORE) currently has the highest performing score on OKTA with 3/6 (50%) price target fulfillment ratio. His price targets carry an average of $33.19 (37.37%) potential upside. Okta stock price reaches these price targets on average within 30 days.

CrowdStrike Reports Strong Q2 Results but Lowers Full-Year Guidance Amid Global Outage

CrowdStrike Holdings reported fiscal second-quarter results, posting adjusted earnings per share (EPS) of $1.04, surpassing the LSEG consensus estimate of $0.97. Revenue for the quarter reached $963.9 million, beating the expected $959 million and marking a 32% year-over-year increase.

Annual Recurring Revenue (ARR) rose 32% year-over-year to $3.86 billion, just above the StreetAccount consensus of $3.85 billion. CrowdStrike also reported operating cash flow of $326.6 million and free cash flow of $272.2 million, with $4.04 billion in cash and cash equivalents as of July 31, 2024.

Despite these results, CrowdStrike lowered its full-year guidance, anticipating adjusted EPS of $3.61 to $3.65, down from the previous forecast of $3.93 to $4.03. Revenue projections were also reduced to between $3.89 billion and $3.90 billion, compared to earlier estimates of $3.98 billion to $4.01 billion.

The guidance revision is largely attributed to a global outage on July 19, when a faulty update to its Falcon sensor caused significant disruptions, including flight cancellations and delayed deliveries, leading to legal claims and potential liabilities. CrowdStrike’s revised outlook also accounts for an estimated $30 million reduction in subscription revenue in each remaining fiscal quarter.

Analysts Adjust Ratings and Price Targets Following Q2 Report

HSBC analyst Stephen Bersey upgraded from Hold to Buy and the price target from $302 to $339.
TD Cowen analyst Shaul Eyal maintained a Buy rating but lowered the price target from $400 to $380.
WestPark Capital analyst Paul Rodriguez reiterated a Hold rating.
Cantor Fitzgerald analyst Yi Fu Lee kept an Overweight rating while reducing the price target from $400 to $350.
BMO Capital analyst Keith Bachman maintained an Outperform rating and raised the price target from $290 to $315.
DA Davidson analyst Rudy Kessinger sustained a Buy rating and lifted the price target from $290 to $310.
RBC Capital analyst Matthew Hedberg maintained an Outperform rating but lowered the price target from $345 to $335.
Raymond James analyst Adam Tindle kept an Outperform rating and reduced the price target from $380 to $275.

Which Analyst has the best track record to show on CRWD?

Analyst Keith Bachman (BMO) currently has the highest performing score on CRWD with 7/9 (77.78%) price target fulfillment ratio. His price targets carry an average of $27.46 (10.46%) potential upside. CrowdStrike Holdings stock price reaches these price targets on average within 31 days.

Pure Storage Exceeds Q2 Revenue and EPS Estimates, Updates FY 2025 Guidance

Pure Storage reported financial results for the second quarter of fiscal year 2025, with revenue of $763.8 million, surpassing the consensus estimate of $756.02 million. Also reported a better-than-expected earnings per share (EPS) of $0.44, exceeding the analyst estimate of $0.37.

Operating profit for the quarter was $139 million, and subscription services annual recurring revenue (ARR) grew by 24% to over $1.5 billion. Total remaining performance obligations (RPO) increased 24% year-over-year to $2.3 billion. Also saw a growth in its FlashArray//E and FlashBlade//E product lines, with total contract value (TCV) sales for storage-as-a-service offerings hitting $101 million in the quarter.

Looking ahead, Pure Storage anticipates third-quarter revenue of $815 million, slightly above the consensus estimate of $810.1 million. For the full fiscal year 2025, reaffirmed its revenue target of $3.1 billion, slightly below the consensus forecast of $3.13 billion.

Analyst Ratings and Price Targets Adjusted Following Q2 FY 2025

Lake Street analyst Eric Martinuzzi maintained a Buy rating but lowered the price target from $70 to $68.
Northland Capital Markets analyst Nehal Chokshi reiterated a Market Perform rating and decreased the price target from $68 to $59.
TD Cowen analyst Krish Sankar kept a Buy rating while reducing the price target from $80 to $70.
Citigroup analyst Asiya Merchant retained a Buy rating but lowered the price target from $75 to $67.
Stifel analyst Matthew Sheerin maintained a Hold rating and revised the price target down from $65 to $60.
Piper Sandler analyst James Fish held a Neutral rating and adjusted the price target from $60 to $56.
Evercore ISI Group analyst Amit Daryanani maintained an Outperform rating and reduced the price target from $75 to $70.
UBS analyst David Vogt maintained a Sell rating and lowered the price target from $47 to $45.

Which Analyst has the best track record to show on PSTG?

Analyst David Vogt (UBS) currently has the highest performing score on PSTG with 4/6 (66.67%) price target fulfillment ratio. His price targets carry an average of $-15.77 (-25.12%) potential downside. Pure Storage stock price reaches these price targets on average within 207 days.