While probably not a household name, this company could be a target of private equity. Okta Inc. (NASDAQ: OKTA) is an independent provider of identity for the enterprise. The company’s Okta Identity Cloud platform provides identity management solutions that enable customers to secure their users and connect them to technology and applications. It also connects enterprises to their customers, employees, contractors and partners.
The products allow users to access a range of cloud applications, websites, mobile applications and service from various devices. Information technology (IT) organizations use its platform to secure their enterprise and developers use it to build customer-facing websites and applications.
Okta Identity Cloud consists of a suite of products to manage and secure identities. It offers a range of products, such as Adaptive Multi-Factor Authentication, Universal Directory, Lifecycle Management products, Single Sign-On, application program interface Access Management and Mobility Management.
Deutsche Bank has a $152 price target, and the consensus target is lower at $121.41. The shares closed on Tuesday at $134.85.
This smaller cap company also could be a great takeover target. RingCentral Inc. (NYSE: RNG) offers a cloud-based solution for business communications that replaces legacy and expensive on-premise communications systems. It is delivered as an application that follows the user regardless of device (office phone, smartphone, desktop, tablet). Features include voice, text, fax, audio conferencing and integration with document and customer relationship management systems.
For some time, Deutsche Bank analysts have believed the company has multiple catalysts, including continued traction with mid/enterprise customers, increased partner traction, international expansion and continued dislocation in the industry from legacy PBX/UC vendors.
The $135 Deutsche Bank price target compares with the $134.39 consensus target and the most recent close at $121.71.
This may be the top stock to own in this fast-growing segment. Twilio Inc. (NYSE: TWLO) provides cloud communications platform that enables developers to build, scale and operate communications within software applications through the cloud as a pay-as-you-go service in the United States and internationally.
The company offers programmable communications cloud software that enables developers to embed voice, messaging, video and authentication capabilities into their applications through application programming interfaces. The company also provides use-case products, such as a two-factor authentication solution.
Deutsche Bank has set its price objective at $160. The consensus target price is $148.52, and shares closed at $142.59 on Tuesday.
These four red-hot companies also could be poised to beat earnings estimates. It probably makes sense though to buy partial positions and wait to view the actual results. Even if the numbers come in strong, if forward guidance disappoints, that could be an issue, especially for these companies as they have run hard.