Okta Blows by Our Lofty Expectations for Q1, and Shares Are Very Undervalued to Our $280 FVE

We are maintaining our $280 fair value estimate for narrow-moat Okta after its first-quarter revenue growth and adjusted earnings easily surpassed our lofty expectations. Even with shares jumping more than 15% after strong results, we still see shares appreciably undervalued. We think Okta's position as a leader within the identity and access management cybersecurity market provide it with an enviable position as organizations increasingly use identity-based measures as their first line of defense in a world that no longer has defined security perimeters. Additionally, we believe Okta is only in the early stages of establishing an especially sticky identity platform that consolidates various security and user enablement functions from a sole vendor.