On Thursday, Okta Inc. (NASDAQ:OKTA) shares gained more than 11% after releasing its most recent quarterly results. The company announced its fiscal third-quarter revenue and earnings Wednesday after markets closed, beating the consensus for analyst expectations. Okta also issued its FQ4 and FY2022 revenue and non-GAAP loss per share above expectations.
The company posted FQ3 non-GAAP earnings per share of -$0.07, outperforming the consensus for analyst estimates of -$0.23. On the other hand, its GAAP EPS of -$1.44 was below the Street forecast of -$1.24, while revenue for the quarter increased by 61.3% from last year to $360.68 million, surpassing expectations by $23.2 million.
Okta also received a rating boost after Piper Sandler upgraded to overweight from neutral, assigning a price target of $270 per share, up from $250.
Is it safe to buy Okta shares?
From an investment perspective, Okta shares trade at a steep P/S ratio of 36.67, making the stock too expensive for bargain hunters.
However, with the semiconductor industry recovery expected in the coming quarters, analysts forecast Okta’s EPS to improve by 28.40% next year.
Therefore, growth investors could find it as an attractive option for their portfolios.
Source – TradingView
Technically, Okta shares seem to be trading within a sharply descending channel formation in the intraday chart. However, Thursday’s spike helped the stock to recover from oversold conditions, creating an opportunity to ride the rebound.
Therefore, investors could target extended gains at about $226.97, or higher at $236.60, while $209.03 and $199.39 are support zones.
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