In a report released today, Peter Weed from Bernstein maintained a Buy rating on Okta (OKTA – Research Report), with a price target of $132.00.
Peter Weed has given his Buy rating due to a combination of factors including Okta’s strong financial performance and promising growth prospects. The company reported a significant revenue beat in FQ4’25, surpassing guidance by $14 million and raising its full-year FY26 revenue forecast by $80 million. This positive momentum is supported by exciting customer wins and a robust product pipeline, including the success of their new Governance product and re-accelerating customer identity growth.
Additionally, Okta’s operating margins have improved, with Non-GAAP operating margin guidance raised to nearly 25%, exceeding consensus expectations. The company’s Rule-of-40 performance of approximately 54 indicates strong growth and profitability. Looking forward, Okta is expected to benefit from easing contract renewal headwinds and increased demand for its products, which should drive growth into the mid-teens by the end of the year. These factors underpin Weed’s optimistic outlook and justify a higher price target for the stock.
According to TipRanks, Weed is a 4-star analyst with an average return of 11.0% and a 54.67% success rate. Weed covers the Technology sector, focusing on stocks such as Okta, Datadog, and Zscaler.
In another report released today, Mizuho Securities also upgraded the stock to a Buy with a $127.00 price target.