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Investing.com - RBC Capital has raised its price target on Okta, Inc (NASDAQ:OKTA) to $115.00 from $113.00 while maintaining an Outperform rating following the company’s quarterly results. The identity management firm, currently trading at $91.56 with a market capitalization of $16.1 billion, has demonstrated impressive gross profit margins of 76.69%.
The identity management firm reported better-than-expected performance with customer remaining performance obligations (cRPO) growing 13.5% compared to guidance of 10%, according to RBC Capital. InvestingPro data reveals that 41 analysts have revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s trajectory.
Notably, macroeconomic concerns and Federal Reserve-related fears "did not come to fruition," with the company removing macro headwinds from its fiscal year 2026 guidance considerations.
Okta raised its fiscal year 2026 guidance "across the board," prompting RBC Capital to increase its price target based on raised fiscal year 2027 estimates.
RBC Capital remains "constructive on the long-term opportunity" for Okta, citing potential for higher estimates, particularly as "the agentic opportunity materializes."
In other recent news, Okta, Inc. reported its fiscal second-quarter 2026 earnings, surpassing Wall Street expectations. The company achieved a non-GAAP earnings per share of $0.93, exceeding the consensus estimate of $0.84. Revenue for the quarter reached approximately $728 million, marking a 13% increase year-over-year and surpassing the projected $711.6 million. Despite these strong results, BofA Securities maintained an Underperform rating on Okta, citing competitive concerns and setting a price target of $75.00. Okta’s guidance for the third and fourth quarters aligned with market expectations, even after removing conservatism related to macroeconomic uncertainty. Citizens analyst Trevor Walsh reiterated a Market Perform rating following the positive earnings report. These developments indicate ongoing analyst caution despite the company’s strong quarterly performance.
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