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Okta’s Strong Financial Performance and Positive Outlook Justify Buy Rating

Okta’s Strong Financial Performance and Positive Outlook Justify Buy Rating

Shrenik Kothari, an analyst from Robert W. Baird, maintained the Buy rating on Okta. The associated price target remains the same with $148.00.

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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Okta’s robust financial performance and promising future outlook. The company reported impressive second-quarter results for fiscal year 2026, surpassing expectations in both revenue and profitability. Revenue grew by 12.7%, while the operating margin reached 27.7%, both figures exceeding consensus estimates. Additionally, Okta’s earnings per share of $0.91 also beat projections by $0.07.
Furthermore, Okta’s fiscal year 2025 guidance has been raised, indicating a positive growth trajectory with revenue expected to grow by 10.3% at the midpoint. The company also demonstrated strong customer acquisition, adding 75 net-new customers with annual contract values over $100k, and maintaining a dollar-based net retention rate of 106%. These factors, combined with a solid free cash flow margin of 22.3%, underpin Kothari’s confidence in Okta’s continued success and justify the Buy rating.

In another report released today, Roth MKM also maintained a Buy rating on the stock with a $119.00 price target.

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