Okta stock holds Market Perform rating at Citizens JMP

On Tuesday, Citizens JMP maintained a Market Perform rating for Okta, Inc (NASDAQ: NASDAQ:OKTA). The firm’s analyst, Trevor Walsh, noted that Okta’s stock is currently trading at a forward-looking enterprise value to revenue multiple for the calendar year 2026 (CY26E EV/revenue) of 5.4 times. This valuation is below the average multiple of 6.6 times for the peer group that Citizens JMP tracks. According to InvestingPro data, the company’s current market capitalization stands at $17.51 billion, with the stock showing impressive momentum, gaining over 28% in the past six months. InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued.

Walsh’s assessment acknowledges Okta’s established position in the Access Management market but also points to increasing competition and potential commoditization within the industry. These factors contribute to the analyst’s perspective of a balanced risk/reward scenario for the company’s shares. InvestingPro data reveals that Okta maintains impressive gross profit margins of 76.32%, with revenue growing at 15.33% year-over-year. For deeper insights into Okta’s competitive position and detailed financial analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The analyst further expressed caution regarding Okta’s efforts to expand its product offerings into related identity markets. The uncertainty around this strategic move appears to be a factor in the decision to maintain the current rating.

Okta, known for its identity and access management services, has been a leader in this space but now faces new challenges as the market landscape evolves. The company’s future performance in the market and any subsequent impact on its stock will likely be influenced by its ability to navigate the competitive environment and successfully broaden its product range.

Citizens JMP’s continued Market Perform rating suggests that the firm does not anticipate a significant change in Okta’s stock performance in the near term, given the current market dynamics and the company’s strategic position. Notably, InvestingPro analysis shows that 30 analysts have recently revised their earnings expectations upward for the upcoming period, with analyst price targets ranging from $75 to $140 per share. InvestingPro subscribers have access to 12 additional key insights about Okta’s financial health and market position.

In other recent news, Okta, Inc. has been the subject of various analyst assessments, reflecting its position in the identity management sector. BMO Capital Markets raised its price target for Okta to $130, citing improved execution and growth in performance obligations, although it maintained a Market Perform rating. Similarly, Cantor Fitzgerald initiated coverage with an Overweight rating and a $130 price target, highlighting Okta’s strategic efforts to boost growth, including expanding its international reach and enhancing product lines. KeyBanc Capital Markets reiterated its Overweight rating with a $135 target, expressing confidence in Okta’s growth trajectory and opportunities for expansion within its enterprise customer base.

Stephens, on the other hand, began its coverage with an Equal Weight rating and a $127 price target, noting Okta’s potential for growth driven by secular tailwinds in the identity security market. Meanwhile, TD Cowen maintained a Hold rating with a $110 target, acknowledging Okta’s strong fiscal year 2025 close and its robust financial health, but opting for a cautious outlook. Analysts from these firms emphasize Okta’s strategic positioning and growth potential, although their price targets and ratings vary based on differing evaluations of the company’s execution and market conditions. These developments provide a detailed view of Okta’s current standing and future prospects in the cybersecurity industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.