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Investing.com - Jefferies has reduced its price target on Okta, Inc (NASDAQ:OKTA) to $100.00 from $105.00 while maintaining a Hold rating on the identity management software provider. Currently trading at $91.03, Okta shows strong fundamentals with a 76.69% gross profit margin and 13.51% revenue growth. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model.
The firm expects Okta’s second-quarter contracted remaining performance obligations (cRPO) to exceed guidance of $2.203 billion, potentially beating the 10% year-over-year growth target by approximately 2%.
Jefferies notes its value-added reseller (VAR) survey showed quarter-over-quarter improvement, though the small and medium-sized business (SMB) segment has experienced pressure in other earnings reports.
The research firm anticipates Okta will guide third-quarter cRPO growth to 8-9% year-over-year, below the consensus estimate of 9.4%, which may raise questions about the company’s revenue growth trajectory through fiscal year 2027.
Despite these concerns, Jefferies points out that Okta’s valuation of 4.7 times calendar year 2026 estimated revenue should provide some support for the stock, while the firm remains positive on Okta’s long-term strategic vision but awaits fundamental improvement.
In other recent news, Okta, Inc. is set to release its second-quarter fiscal 2026 earnings report on August 26, with TD Cowen maintaining a Hold rating and a $115.00 price target for the company. The firm anticipates Okta’s results will align with expectations, given the solid trends in the Identity and Access Management sector. Additionally, Okta has strengthened its leadership team by appointing David Schellhase and Maggie Wilderotter to its board of directors. In a strategic move, Okta has expanded its partnership with Palo Alto Networks (NASDAQ:PANW) to include new security integrations, enhancing threat response and application access security. The company also announced Benjamin Horowitz’s resignation from its board, which led to a reduction in board size from nine to eight members. Furthermore, Okta has launched Cross App Access, a protocol designed to secure AI agent interactions across enterprise applications. These developments reflect Okta’s ongoing efforts to enhance its leadership and security capabilities.
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