Okta stock price target raised to $100 at Truist Securities

On Tuesday, Truist Securities adjusted its price target for Okta, Inc. (NASDAQ:OKTA) shares, increasing it to $100.00 from the previous $92.00, while maintaining a Hold rating on the stock. According to InvestingPro data, Okta currently trades at $87.16, with analysis suggesting the stock may be undervalued. The company maintains strong fundamentals, with impressive gross profit margins of 76.32%. Following the release of Okta’s fourth fiscal quarter 2025 results, which surpassed expectations, the firm’s analysts pointed out the company’s strong performance and provided guidance that exceeded preliminary targets for fiscal year 2026. The company’s revenue grew 15.33% over the last twelve months, reaching $2.61 billion. InvestingPro analysis reveals 8 additional key insights about Okta’s financial health, available to subscribers.

The report highlighted Okta’s success in gaining traction with its platform, noting a significant contribution from Okta Identity Governance (OIG). Analysts at Truist Securities emphasized the growing number of large customers and their contributions as critical indicators of Okta’s future success. They acknowledged that while targeting large enterprise deals appears to be a strategic move for Okta, acquiring new logos continues to pose a challenge for the company.

The analysts have updated their estimates for Okta based on the recent financial data and the company’s guidance for the upcoming fiscal year. The revised price target reflects a positive outlook on Okta’s ability to maintain its growth trajectory, particularly through its platform’s performance and enterprise customer engagement.

Okta’s fourth fiscal quarter results, which showed a 16% increase after hours (AH), were a key factor in Truist Securities’ decision to raise the price target. The results demonstrated the company’s ability to exceed analyst estimates and set a strong foundation for the next fiscal year.

In conclusion, Truist Securities reaffirmed its Hold rating for Okta but expressed confidence in the company’s strategy and market position by raising the price target to $100. This adjustment is based on the company’s solid fiscal performance and expectations of continued growth and profitability. With analyst targets ranging from $75 to $140, and InvestingPro’s comprehensive analysis showing positive net income growth expectations, investors can access detailed valuation metrics and over 30 financial indicators through InvestingPro’s detailed research reports.

In other recent news, Okta, Inc. reported strong financial results for the fourth quarter of fiscal year 2025, with earnings per share (EPS) of $0.78, surpassing the forecast of $0.74. The company’s revenue reached $682 million, exceeding the expected $668.91 million, marking a 10% year-over-year increase. Analysts have reacted positively to these results, with BTIG raising Okta’s stock price target to $123, citing the company’s impressive calculated remaining performance obligations (CRPO) of $2,248 million, a 15% increase from the previous year. Barclays (LON:BARC) also adjusted its price target for Okta to $115, noting the strong fourth-quarter performance and potential for higher revenue in fiscal year 2026.

Mizuho (NYSE:MFG) Securities upgraded Okta’s stock rating to Outperform and increased the price target to $127, highlighting the company’s robust growth figures and optimistic revenue guidance for fiscal year 2026. DA Davidson also upgraded Okta’s stock to Buy, raising the price target to $125, reflecting confidence in the company’s sustainable double-digit growth and improved sales productivity. Okta’s guidance for fiscal year 2026 suggests revenue growth of 9-10%, with a midpoint revenue estimate set at $2,855 million, indicating a positive outlook for the company’s future performance.

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