Okta (NASDAQ) fell more than 10% yesterday, as analysts expressed concern about the company’s performance following reports of an attack on its digital data.

According to these reports, Raymond James analyst Adam Tindle downgraded Okta shares yesterday to Market Perform, following Truist analyst Joel Fishbein Jr., who reduced Okta from Buy to Hold on Tuesday.

Tindle claimed that Okta can replicate Salesforce.com (NYSE.:) and be a platform cloud. Tindle has had to leave the scene because this bullish thesis isn’t proving to be true.

1. A disconnected CIAM strategy for going to market (i.e. still separate reps for Auth0/Okta, no communication to incent channel cross-sell, no evidence of improved technology/integration as we discuss in our IT Survey.) Although Okta’s track record was a positive sign, partners are still concerned about Okta’s handling of the latest security incident. Tindle also explained that 2) PAM/IGA had been missing true technological functionality. This is something we’ve discussed over many partner webinars. Oktas management of the security incident could cause customers concern about integrating additional functionality onto Oktas platforms.

Brian Essex, a Goldman Sachs analyst (NYSE:), joined BTIG to reiterate a Buy rating in the face of a selloff. Essex believes OKTA shares have a buy opportunity as they are trading at 30% below their YTD.

Although the initial contact with Okta and the additional details provided today by Okta may have taken a little longer than expected, the company showed that they took the appropriate steps to handle the situation. We believe the transparency will allow the company to continue its momentum with existing and new customers. Essex stated in a client letter that we maintain our Buy rating, and see the pullback as an opportunity to buy.

By Senad Karaahmetovic