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Investing.com - Mizuho maintained its Outperform rating and $120.00 price target on Okta, Inc (NASDAQ:OKTA), currently trading at $91.56, following the company’s strong fiscal second-quarter performance. The identity management company, with a market capitalization of $16.1 billion, continues to show robust growth with revenue increasing 13.5% year-over-year.
The identity management company reported current remaining performance obligations (cRPO) growth of 13.5% year-over-year, exceeding Wall Street’s expectations of approximately 10.5%. Mizuho attributed this performance to solid execution and generally good public sector activity, which had previously been an area of concern. According to InvestingPro data, 41 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s trajectory.
Okta’s new go-to-market specialization strategy appears to be off to a promising start, according to Mizuho’s analysis. Management has also removed a previously added layer of conservatism in its outlook, resulting in solid fiscal third-quarter guidance and a raised full-year outlook. The company maintains impressive gross profit margins of 76.7%, as revealed in InvestingPro’s detailed financial analysis.
Mizuho emphasized Okta’s position as a clear leader in the identity management market, noting the company will increasingly benefit from its newer products that have already begun to make meaningful contributions to its business.
The firm highlighted Okta’s attractive valuation at less than 5 times calendar year 2026 estimated revenue and 16-17 times free cash flow as additional support for maintaining its Outperform rating and $120 price target.
In other recent news, Okta, Inc. reported its fiscal second-quarter 2026 results, surpassing Wall Street expectations. The company achieved a non-GAAP earnings per share of $0.93, exceeding the consensus estimate of $0.84. Revenue for the quarter reached approximately $728 million, marking a 13% increase year-over-year and surpassing the $711.6 million consensus. RBC Capital responded to these results by raising its price target on Okta to $115 from $113, maintaining an Outperform rating. In contrast, BofA Securities continued to hold an Underperform rating with a $75 price target, citing competitive concerns despite Okta’s recent guidance adjustments. Citizens analyst Trevor Walsh reiterated a Market Perform rating following Okta’s strong quarterly performance. RBC Capital highlighted Okta’s customer remaining performance obligations growing by 13.5%, outperforming the guidance of 10%. These developments reflect the company’s ongoing financial and market dynamics.
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