Gray Powell, an analyst from BTIG, reiterated the Buy rating on Okta. The associated price target remains the same with $142.00.
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Gray Powell has given his Buy rating due to a combination of factors that highlight Okta’s strategic positioning and growth potential. One of the key drivers is Okta’s initiative to consolidate various identity management solutions into a single platform, which is expected to simplify customer environments and enhance their readiness for emerging technologies like Agentic AI. This consolidation effort is particularly promising in the governance market, where Okta is gaining traction with its OIG solution.
Additionally, Okta’s introduction of new products such as Okta for AI Agents and Cross Application Access demonstrates the company’s commitment to innovation and addressing evolving customer needs. While the immediate revenue growth may not accelerate significantly, the stabilization of growth trends and the potential for increased spending from existing customers who adopt the full suite of Okta’s offerings provide a solid foundation for future performance. These strategic initiatives, coupled with a reasonable valuation based on projected financial metrics, underpin Powell’s optimistic outlook on Okta’s stock.
Powell covers the Technology sector, focusing on stocks such as Palo Alto Networks, CyberArk Software, and Check Point. According to TipRanks, Powell has an average return of 10.2% and a 57.39% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $123.00 price target.