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Investing.com - KeyBanc has reiterated an Overweight rating and $140.00 price target on Okta, Inc (NASDAQ:OKTA), currently trading at $91.56, following the company’s strong fiscal second-quarter performance. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $75 to $142.
Okta delivered a solid beat across key metrics, with current remaining performance obligation (cRPO) growth of 13.5% exceeding the consensus estimate of 10%. The company’s impressive performance is underscored by its robust gross profit margin of 76.69% and consistent revenue growth of 13.51% over the last twelve months. The company raised its fiscal year 2026 revenue guidance by $25 million, increased EBIT margin by 50 basis points, and improved free cash flow margin by 1 percentage point.
The U.S. public sector continued to show strength, contributing five of the top 10 deals in the quarter. The largest deal was with a Department of Defense agency related to the myAuth roll-out, according to management commentary.
Okta’s ongoing go-to-market transition to a specialized sales model is showing positive signs, with management noting record pipeline generation, improved sales productivity, and increased channel contribution. The company also announced the acquisition of privileged access management (PAM) vendor Axiom to strengthen its capabilities in that area.
KeyBanc cited Okta’s early leadership in securing agentic AI and its position as a consolidator in the identity space as reasons for maintaining its positive outlook, raising its fiscal 2026 and fiscal 2027 free cash flow estimates by 5% and 4%, respectively. InvestingPro analysis suggests Okta is currently undervalued, with 12 additional exclusive ProTips available to subscribers, including detailed insights on the company’s financial health and growth prospects.
In other recent news, Okta, Inc reported strong earnings for its fiscal second quarter, surpassing analyst estimates across all key metrics. The company’s revenue performance was particularly notable, with a 2.4% beat over guidance, marking its strongest revenue beat in a year. Okta also improved its outlook for the second half of the year, raising its full-year forecast by nearly 50% more than the quarterly beat amount. Several firms, including Stifel, UBS, and Cantor Fitzgerald, reiterated their positive ratings on Okta, with price targets set at $130.00. Bernstein, while maintaining an Outperform rating, slightly adjusted its price target to $129.00 due to an adjusted growth outlook. Mizuho also reiterated an Outperform rating, setting a price target of $120.00, citing the company’s 13.5% year-over-year growth in current remaining performance obligations (cRPO). This growth exceeded Wall Street’s expectations and was attributed to solid execution and improved public sector activity. These developments reflect a generally positive sentiment among analysts towards Okta’s recent performance.
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