The recent dropdown in Okta ‘s share price creates a one-of-a-kind buying opportunity for investors, according to Jefferies. Shares of the identity management software provider have dropped roughly 73% this year amid a slew of macro-related and sales integration issues — along with a security breach. “This has, in our view, created an attractive entry point for a leading cyber asset,” wrote analyst Joseph Gallo on Thursday as he initiated shares of the cybersecurity stock with a buy rating. “While we do not discount the amount of work in front of the company (likely to take a few quarters), we highlight a fantastic product, coupled with a large and underpenetrated market.” The firm’s $90 price objective suggests shares could jump 48% going forward. While Gallo expects Okta’s turnaroud efforts to take a few quarters, the company should benefit from rising demand for a multi-use identity product. He views its customer identity and access management service as a “significant greenfield opportunity.” “We believe Okta has a significant opportunity as it attempts to build out a complete identity platform,” Gallo said. “Investors should always buy category leaders in cyber, and we view OKTA as exactly that.” — CNBC’s Michael Bloom contributed reporting
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