Okta’s Growth Potential and Resilience Highlighted Amidst Attractive Buying Opportunity

Analyst Meta Marshall of Morgan Stanley maintained a Buy rating on Okta, reducing the price target to $110.00.

Meta Marshall’s rating is based on a combination of factors that highlight Okta’s potential for growth and resilience. Despite the absence of guidance for FY27, which could have served as a catalyst for changing market sentiment, Okta’s recent performance has been in line with expectations, showing a 13% year-over-year growth in current remaining performance obligations (cRPO). This growth exceeded Morgan Stanley’s estimates and indicates positive momentum.
Furthermore, Meta Marshall notes that Okta’s sales initiatives are gaining traction and new products are seeing early adoption, which bodes well for future growth. The company also continues to outperform in terms of cash flow, providing it with increased momentum as it heads into FY27. These factors, combined with the stock’s recent decline, present an attractive buying opportunity, particularly as the identity investment sector gains more attention from enterprises due to advancements in AI.

In another report released today, Needham also maintained a Buy rating on the stock with a $110.00 price target.