Oppenheimer lifts Okta stock price target to $135 on strong results

On Tuesday, Oppenheimer analysts increased the price target for Okta, Inc (NASDAQ:OKTA) shares to $135, up from $135, while reiterating an Outperform rating. The decision follows Okta’s impressive fourth-quarter fiscal year 2025 earnings and upbeat guidance, reflecting robust growth across the business. According to InvestingPro data, Okta maintains impressive gross profit margins of 76.32% and has achieved profitability over the last twelve months. The company’s current market valuation suggests potential upside, with comprehensive analysis available in InvestingPro’s detailed research report.

Okta reported significant progress with large customers, noting a 22% year-over-year increase in accounts with an annual contract value (ACV) over $1 million, reaching a total of 470. The company also saw a record contribution from Auth0, its recent acquisition, and heightened activity in product cross-selling. The analysts highlighted these factors as evidence of Okta’s expanding product suite, which includes Identity Governance and Administration (IGA), Privileged Access Management (PAM), Identity Security Posture Management (ISPM), and Identity Threat Detection and Response (ITDR). This expansion has contributed to Okta’s strong revenue growth of 15.33% over the last twelve months, with InvestingPro analysts expecting continued growth in the coming year.

The firm’s sales strategy adjustments, including specialization and channel/partner investment, were also recognized as catalysts for Okta’s strong performance. Oppenheimer expressed confidence in Okta’s potential for a multi-quarter re-rating growth scenario, driven solely by its solid sales execution and comprehensive product portfolio.

Despite the positive results, Okta’s management has provided guidance with caution, acknowledging the still mixed macroeconomic environment and limited seat expansion. However, Oppenheimer views this as an indication of additional upside potential should the macroeconomic conditions improve.

In summary, Oppenheimer’s updated analysis of Okta’s financial results and future guidance has led to an increased price target, reflecting a positive outlook on the company’s growth trajectory and market position.

In other recent news, Okta, Inc. has reported strong financial performance, surpassing expectations in its fourth fiscal quarter of 2025 with a revenue of $682 million, which exceeded guidance by $14 million. The company’s robust results have led to several analysts raising their price targets. Bernstein SocGen Group increased their price target to $132, maintaining an Outperform rating, while Scotiabank (TSX:BNS) raised theirs to $109, keeping a Sector Perform rating. Canaccord Genuity adjusted their target to $100, maintaining a Hold rating, and Citi set theirs at $110, upholding a Neutral rating. JPMorgan also increased their target to $120, maintaining an Overweight rating.

Okta’s growth was highlighted by a 25% year-over-year increase in Remaining Performance Obligations (RPO), reaching $4.2 billion. The company’s new Governance product achieved a $100 million annual recurring revenue milestone, with customer identity growth outpacing worker identity growth. Additionally, Okta’s calculated remaining performance obligations (cRPO) saw a 15% increase, and their updated fiscal year 2026 guidance anticipates a 9-10% growth rate, which is higher than initial estimates. Analysts have noted Okta’s strong product pipeline and improving financial metrics, with strategic efforts leading to increased sales productivity and large deal activities.

Despite the positive outlook, some firms, like Scotiabank and Citi, remain cautious, opting to monitor Okta’s ability to sustain its growth momentum. Nevertheless, the company’s recent performance has been noted as a sign of recovery and potential for sustained growth, with analysts expressing confidence in Okta’s prospects for the upcoming fiscal year.

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