Gray Powell, an analyst from BTIG, reiterated the Buy rating on Okta. The associated price target is $142.00.
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Gray Powell’s rating is based on Okta’s strong performance in the second quarter, where the company exceeded expectations in several key financial metrics. Okta’s current remaining performance obligations (CRPO) and free cash flow (FCF) were notably higher than anticipated, suggesting robust financial health. Moreover, Okta raised its revenue guidance for fiscal year 2026, indicating confidence in its growth trajectory, with expectations of achieving a growth rate closer to 12% rather than the conservative 10% previously guided.
Additionally, Okta’s strategic positioning as a vendor-neutral identity provider is seen as a competitive advantage, allowing seamless integration with various SaaS applications and avoiding vendor lock-in. The company’s growth in both workforce and customer identity annual contract value (ACV) remained stable, and management’s commentary on go-to-market changes and productivity improvements was positive. These factors, combined with a record pipeline and improved productivity, underpin Powell’s Buy rating for Okta.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $140.00 price target.
OKTA’s price has also changed slightly for the past six months – from $89.580 to $91.560, which is a 2.21% increase.