Okta stock rating maintained at Underperform by BofA amid competitive concerns

Investing.com - BofA Securities maintained its Underperform rating and $75.00 price target on Okta, Inc (NASDAQ:OKTA) following the company’s recent guidance adjustments. According to InvestingPro data, the identity management company, currently valued at $16.1 billion, has impressed analysts with 41 experts revising their earnings estimates upward for the upcoming period.

The identity management firm removed conservatism from its guidance related to macroeconomic uncertainty and federal weakness, though its third and fourth quarter projections largely aligned with market expectations.

Okta management indicated that actual results should begin to more closely reflect guidance levels, compared to the approximately 300 basis points revenue and current remaining performance obligations (cRPO) outperformance demonstrated in recent quarters.

BofA noted that while Okta stated it does not expect Palo Alto Networks’ acquisition of CyberArk to significantly alter the competitive landscape, fundamental market dynamics including increasing competition appear to be impacting the company’s outlook.

In what appears to be a competitive response, Okta announced the acquisition of privileged access management (PAM) vendor Axiom Security, potentially addressing competitive pressures in the identity security market.

In other recent news, Okta, Inc. reported its fiscal second-quarter 2026 earnings, surpassing Wall Street expectations. The company achieved non-GAAP earnings per share of $0.93, which exceeded the consensus estimate of $0.84. Revenue for the quarter reached approximately $728 million, marking a 13% increase year-over-year and surpassing the expected $711.6 million. Analysts from Citizens have reiterated a Market Perform rating on Okta following these robust results. The earnings surprise of 8.33% was noted as a positive development. Okta’s performance has drawn attention, with analysts and investors closely monitoring the company’s financial health. These developments reflect Okta’s ongoing growth and strong financial performance in the current fiscal year.

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