Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on Okta, Inc (NASDAQ:OKTA) with a price target of $130.00. According to InvestingPro data, analyst targets range from $75 to $142, with 41 analysts recently revising their earnings expectations upward. The identity management company, currently valued at $16.1 billion, appears slightly undervalued based on InvestingPro’s Fair Value analysis.
The firm maintained its positive stance on the identity management software provider following Okta’s strong second-quarter fiscal 2026 performance, which exceeded FactSet consensus estimates on revenue, current remaining performance obligations (cRPO), operating margin, and earnings per share. The company maintains impressive gross profit margins of ~77% and has achieved 13.5% year-over-year revenue growth. InvestingPro analysis shows the company’s overall financial health score as GOOD, supported by strong growth and cash flow metrics.
Cantor Fitzgerald noted continued momentum in Okta’s emerging product areas, including Identity Governance, Privileged Access, and Identity Threat Protection, alongside strong growth in the Customer Identity Cloud, which it expects will support strength through the second half of fiscal 2026.
Okta raised its fiscal year 2026 guidance across all metrics, citing the removal of conservatism related to federal and macroeconomic concerns that had been incorporated into first-quarter projections.
Despite the improved outlook, Cantor Fitzgerald views Okta’s third-quarter cRPO guidance of approximately 10% growth as conservative, suggesting potential upside to current forecasts.
In other recent news, Okta, Inc. reported its fiscal second-quarter 2026 results, surpassing Wall Street expectations. The company achieved non-GAAP earnings per share of $0.93, exceeding the consensus estimate of $0.84, and reported revenue of approximately $728 million, up 13% year-over-year, which was ahead of the $711.6 million consensus. Mizuho has reiterated its Outperform rating for Okta with a price target of $120, highlighting the company’s strong performance and solid execution. RBC Capital also raised its price target to $115 from $113, maintaining an Outperform rating due to Okta’s better-than-expected customer remaining performance obligations growth. However, BofA Securities maintained 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 the strong quarterly results. These developments indicate a mixed analyst perspective on Okta’s future, with some firms expressing confidence while others remain cautious.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.