In a report released today, Keith Bachman from BMO Capital maintained a Hold rating on Okta, with a price target of $112.00.
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Keith Bachman has given his Hold rating due to a combination of factors that influence Okta’s current market position and future prospects. While Okta is making significant investments in its identity fabric to secure AI agents, which could position it well in the long term, these initiatives are not expected to yield immediate financial benefits. Bachman acknowledges Okta’s strategic advantage of neutrality, which could serve as a competitive edge against other major players like Microsoft and Palo Alto Networks.
However, the analyst notes that Okta’s current execution has been inconsistent, and there is limited immediate upside in terms of revenue estimates and product traction. Despite the positive outlook for Okta’s long-term investments, the readiness of customers to adopt new AI agent security measures is still in its early stages. Thus, while optimistic about the future, Bachman maintains a cautious stance in the short term, justifying the Hold rating.
In another report released on September 26, Scotiabank also reiterated a Hold rating on the stock with a $105.00 price target.