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Tuesday, Okta, Inc (NASDAQ:OKTA) saw its price target increased by Canaccord Genuity from $94.00 to $100.00, while the firm maintained a Hold rating on the stock. This adjustment follows Okta’s announcement of fourth-quarter results that exceeded both Canaccord’s and the consensus estimates. The company demonstrated a robust 25% growth in Remaining Performance Obligations (RPO), significantly outpacing its revenue growth of 15.3%. Currently trading at $87.16, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $75 to $140.
The analysts at Canaccord Genuity expressed a sense of surprise at the strong performance, especially given the more cautious outlook provided by Okta’s management in the previous quarter. They noted that the positive results in the fourth quarter were a stark contrast to the downbeat commentary from the third-quarter earnings call, which had initially set growth expectations around 7%. InvestingPro data reveals impressive gross profit margins of 76.3% and a strong financial health score, with 8 additional exclusive ProTips available for subscribers.
Okta’s updated fiscal year 2026 guidance anticipates a 9-10% growth rate, which is notably higher than the initial estimates. With a market capitalization of $14.94 billion and a solid current ratio of 1.35, the company maintains strong fundamentals. Canaccord Genuity’s analysts acknowledged the challenge of reconciling Okta’s broad-based success in the quarter with various factors, including changes in guidance philosophy, efforts to specialize the sales force, and the increased prioritization of identity security within IT budgets. For deeper insights into Okta’s financial health and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
The firm’s commentary highlighted that the business experienced a dramatic uptick in the fourth quarter, suggesting an improving fundamental backdrop for Okta. Canaccord Genuity’s new price target reflects their revised expectations based on the company’s recent performance and outlook.
Okta, specializing in identity management solutions, has evidently navigated the evolving market conditions effectively, as evidenced by the strong quarterly results and optimistic guidance for the upcoming fiscal year. The increase in the price target by Canaccord Genuity underscores the company’s resilience and potential for sustained growth.
In other recent news, Okta, Inc. has been the subject of several analyst updates following its robust fourth-quarter performance. JPMorgan raised its price target for Okta to $120, maintaining an Overweight rating, citing the company’s 25% year-over-year growth in Remaining Performance Obligations, which reached $4.2 billion. Wolfe Research also increased its price target to $120, highlighting Okta’s 15% growth in calculated remaining performance obligations and strong profitability metrics, including a 24.6% operating margin. Evercore ISI initiated coverage with an Outperform rating and a price target of $122, acknowledging Okta’s enhanced partner contributions and cross-selling strategies.
Meanwhile, Citi adjusted its price target to $110, maintaining a Neutral rating, noting Okta’s significant growth in annual contract value logos and strategic sales productivity improvements. Truist Securities raised its price target to $100, keeping a Hold rating, and emphasized Okta’s success in gaining traction with its platform and large enterprise customers. Analysts have pointed out Okta’s guidance for fiscal year 2026, which exceeded expectations, and the company’s ability to maintain a strong growth trajectory. Okta’s Identity Governance segment and new product contributions have been key factors in its recent success, with new products accounting for over 20% of fourth-quarter bookings. Despite some challenges, such as ongoing seat-based renewal pressure, analysts generally express confidence in Okta’s strategic direction and market position.
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