TSX runs higher on rate cut expectations
Investing.com - Piper Sandler has reiterated its Neutral rating and $110.00 price target on Okta, Inc (NASDAQ:OKTA), a $16.9 billion identity management company, following the company’s second-quarter results. According to InvestingPro data, this target aligns with the stock’s Fair Value calculation.
The identity management firm delivered second-quarter results showing improved execution compared to the first quarter, with performance metrics exceeding guidance by a wider margin than previously seen. The company maintains impressive gross profit margins of ~77% and has achieved revenue growth of ~14% over the last twelve months.
Management raised guidance to incorporate the upside demonstrated throughout the first half of the year, though Piper Sandler noted that the prospect of a second-half inflection remains uncertain.
The research firm specifically pointed to Okta’s approximately 10% third-quarter current remaining performance obligations (cRPO) guidance, which management indicated contains less conservatism than previous forecasts.
Piper Sandler’s analysis highlighted that Okta’s forward narrative centers on new product launches such as OIG/OPA and a recently announced privileged access management (PAM) acquisition, alongside early-stage agentic contributions, ultimately concluding the stock presents a balanced risk/reward profile.
In other recent news, Okta, Inc reported a strong fiscal second-quarter performance, exceeding expectations across multiple key metrics. The company raised its fiscal year 2026 revenue guidance by $25 million and improved its EBIT margin and free cash flow margin. Following these results, several analyst firms have reiterated their positive outlook on Okta. KeyBanc maintained an Overweight rating with a $140 price target, highlighting the company’s solid beat in current remaining performance obligations. Stifel and UBS both reiterated Buy ratings with $130 price targets, emphasizing the better-than-expected quarterly results and improved outlook for the second half of the year. Bernstein adjusted its price target slightly to $129 from $132, maintaining an Outperform rating, citing Okta’s strongest revenue beat in a year. Cantor Fitzgerald also reiterated an Overweight rating with a $130 price target, noting the company’s performance exceeded consensus estimates in several areas. These developments reflect a broadly optimistic sentiment among analysts regarding Okta’s recent achievements and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.