12:19 PM EDT, 05/29/2024 (MT Newswires) -- Okta's ( OKTA ) business momentum is stable to slightly improving based on feedback from the company's partners as the impact of the October 2023 security breach starts to fade, Wedbush said in a note Wednesday.

The risk/reward for Okta ( OKTA ) heading into its fiscal Q1 print is neutral to slightly positive, "given where we believe the numbers could end up and what the stock is pricing in at current levels," the investment firm said.

Wedbush said Okta ( OKTA ) typically beats the high end of its guide and that fiscal Q1 revenue of about $624 million seems doable while contracted remaining performance obligations, or cRPO, are estimated at $1.94 billion, both above the company's guidance and consensus.

Although there's a slight risk to Q2 cRPO guidance, Okta's ( OKTA ) performance is strong, and its stock is reasonably valued, the firm added.

"Given reasonable buyside expectations, good checks and valuation not too stretched, we believe the downside risk is limited," Wedbush said in the note.

Wedbush maintained an outperform rating on the company's stock with a price target of $130.

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