Mizuho lifts Okta stock rating to Outperform, raises target to $127

On Tuesday, Mizuho (NYSE:MFG) Securities analyst Gregg Moskowitz upgraded shares of Okta, Inc. (NASDAQ:OKTA), a prominent identity management company, from Neutral to Outperform and increased the price target to $127.00, up from the previous $110.00. This adjustment follows a strong fiscal fourth quarter performance by Okta, which saw a considerable 15% year-over-year growth in calculated remaining performance obligations (cRPO), surpassing the anticipated guidance of around 9% year-over-year. The company, currently valued at $14.94 billion, maintains impressive gross profit margins of 76.32% and has attracted positive attention from analysts, with 36 upward earnings revisions for the upcoming period according to InvestingPro.

Moskowitz noted that Okta’s results significantly exceeded expectations, with the company delivering robust growth figures that outpaced their guidance. The analyst acknowledged underestimating Okta’s potential for cRPO growth in the quarter. Looking ahead, management at Okta has provided guidance for the first quarter cRPO that stands well above the consensus estimates. Additionally, they now project revenue growth for fiscal year 2026 to be approximately 9-10% year-over-year compared to the 7% previously forecasted. This outlook aligns with the company’s strong revenue growth of 15.33% over the last twelve months, as reported by InvestingPro, which offers comprehensive financial analysis and additional insights through its Pro Research Reports.

The analyst emphasized Okta’s dominant position in the identity management market and expressed increased confidence in the company’s ability to benefit from its newer products, which have already started making a significant contribution to its performance. Despite Okta’s shares experiencing a 16% after-hours spike, Moskowitz believes that the stock’s valuation remains attractive, trading at only about 5 times its estimated calendar year 2026 revenues.

The upgrade by Mizuho reflects a positive outlook on Okta’s future performance and its strategic positioning within the identity management sector. Okta’s management team’s forecasts and the company’s recent quarter achievements indicate a trajectory of growth that has garnered the confidence of analysts at Mizuho Securities.

In other recent news, Okta Inc . has reported impressive fiscal fourth-quarter results for 2025, surpassing both earnings and revenue expectations. The company posted earnings per share of $0.78, exceeding the forecast of $0.74, and achieved revenue of $682 million, surpassing the anticipated $668.91 million. Okta’s calculated billings and remaining performance obligations showed a year-over-year increase of 15%, outperforming the previous quarter’s 13% and the guided 9%. Following these results, DA Davidson analysts upgraded Okta’s stock rating from Neutral to Buy, raising the price target from $90 to $125. This decision was supported by Okta’s record bookings, which surpassed $1 billion in total contract value, and an improved free cash flow margin of 25%. The company has also seen significant growth in its customer base, with $1 million-plus annual contract value customers increasing by 22% to 470. Okta’s management has expressed a positive outlook, citing increased contributions from enterprise customers and channel partners, along with the impact of newer products on growth. These developments reflect a strong confidence in Okta’s growth trajectory and its ability to sustain double-digit growth.

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