Cybersecurity stock Okta (OKTA) could be in line for a big win, says a new report from Loop Capital. In fact, it could be “a bellwether” going forward, particularly if artificial intelligence (AI) spending continues to grow, which looks like everything but the lead-pipe cinch at this point. Investors, meanwhile, were all in favor, and shares gained over 2% in Monday afternoon’s trading.
A report from Loop Capital started up coverage on Okta, with a Buy rating and a price target at $140 per share, which was itself up 24% against the close on Friday. Analyst Yun Kim, who has a five-star rating on TipRanks, noted that there was likely to be a rise in demand for identity security as generative AI systems were increasing in deployment. Naturally, with all that AI content being generated, there was going to be a clear call for securing identities in response, not just for customers, but also for workers, and for the “non-human entities” doing the generation.
Kim noted: “With Okta having the most strategic asset (Auth0) and the most strategic customer relationship (OpenAI) in this emerging AI-driven demand wave, we believe Okta is perhaps the best-positioned vendor in the identity security market.” Interestingly, Loop Capital is not exactly sticking its neck out with this one: Okta has already gained 43% in 2025 so far.
Joining Up with Theori
And Okta is adding to its lineup, too, which makes it that much more attractive as it works to compete in a substantial field of cybersecurity operations. One of the latest moves is a connection with Theori, an “offensive security” firm. Theori actually works as a kind of hacker, offering “…advanced red-team capabilities and automated penetration testing…” among other things.
Thus, with Theori working to break into systems, and Okta working to defend them, finding and securing system vulnerabilities becomes a process that is, comparatively, much easier. Which is especially helpful, given the rapidly-changing nature of cybersecurity threats, and should make Okta that much more attractive as a result.
Is Okta a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on OKTA stock based on 21 Buys, 14 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.4% rally in its share price over the past year, the average OKTA price target of $118.24 per share implies 2.47% upside potential.
