Analyst Tomer Zilberman of Bank of America Securities reiterated a Sell rating on Okta, retaining the price target of $75.00.
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Tomer Zilberman has given his Sell rating due to a combination of factors impacting Okta’s financial outlook. The company’s guidance for the fourth quarter of fiscal year 2026 and the implied revenue for fiscal year 2027 were slightly below market expectations, indicating a potential slowdown in growth momentum. Although Okta’s net retention rate remained stable, the trend towards securing full-suite deals with large customers may hinder further expansion in this area.
Additionally, Zilberman notes competitive pressures from recent acquisitions by Salesforce and Twilio, as well as the influence of Palo Alto Networks and CrowdStrike, which could limit Okta’s growth. The potential for seat count reductions due to enterprises adopting AI efficiencies poses another risk. While Okta sees opportunities in AI, the current revenue contribution from this area is relatively small, suggesting limited potential to offset these challenges. Consequently, Zilberman maintains a cautious outlook with a price objective of $75, below the current trading price.