Deutsche Bank downgraded OKTA to "hold" and cut its target price to $85
Okta Inc (NASDAQ:OKTA) stock is 1.9% lower ahead of the opening bell, looking to start today's session around the $77 mark on the heels of a sour analyst note. Deutsche Bank downgraded the cybersecurity software stock to "hold" from "buy" and cut its price target from $115 to $85. The analyst cited mixed customer feedback and slower-than-expected growth as catalysts for the bear note.
While most analysts were bearish on OKTA coming into today, there's still room for positive sentiment to unwind. Of the 36 covering brokerages, 15 still recommend a "buy" or "strong buy," which could indicate that more downgrades are in the cards.
A shift in the options pits could also add pressure. Okta stock's 50-day call/put volume ratio of 4.23 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 100% of readings from the past year, indicating an extremely elevated appetite for long calls.
Since the start of 2024, OKTA is down 13.3%. The security is trading well below its March 8 year-to-date high of $114.50, losing 20.3% over the last six months. Meanwhile, Deutsche Bank's new price target of $85 represents an area that Okta stock hasn't seen since late August.