TSX runs higher on rate cut expectations
Investing.com - BMO Capital has reduced its price target for Okta, Inc (NASDAQ:OKTA) to $112.00 from $132.00 while maintaining a Market Perform rating on the identity management company’s stock. According to InvestingPro data, analyst targets for Okta range from $75 to $142, with the stock currently trading at $93.42.
The price target adjustment comes despite Okta beating expectations on key metrics and raising guidance across the board, which prompted BMO to modestly increase its fiscal year 2026 estimates. The company maintains impressive gross profit margins of 76.7%, and InvestingPro data shows 41 analysts have revised their earnings upward for the upcoming period.
BMO Capital believes Okta’s fiscal 2026 revenue guidance remains conservative, particularly regarding current remaining performance obligations (CRPO), though it notes management has removed some conservatism from its outlook due to steady macroeconomic conditions.
The research firm acknowledges Okta’s improving execution and successful portfolio expansion, which has been driving its recent performance.
Despite these positive developments, BMO maintains its Market Perform rating, citing "remaining questions on the level of durable growth" as a key factor in its decision to lower the price target.
In other recent news, Okta, Inc. reported strong second-quarter earnings, surpassing both guidance and analyst estimates across key metrics. The company delivered a notable revenue beat, with growth in current remaining performance obligations (cRPO) reaching 13.5%, exceeding the consensus estimate of 10%. Following these results, Okta raised its fiscal year 2026 revenue guidance by $25 million and improved its EBIT and free cash flow margins. Analyst firms have responded positively, with KeyBanc reiterating an Overweight rating and a $140 price target, while Stifel and UBS both maintained Buy ratings with $130 price targets. Despite the positive outlook, Bernstein adjusted its price target to $129, down from $132, but still maintained an Outperform rating. Piper Sandler, however, kept a Neutral rating with a $110 price target, citing ongoing growth concerns. These developments reflect analysts’ varying perspectives on Okta’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.