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On Tuesday, Scotiabank (TSX:BNS) analyst Patrick Colville increased the price target on Okta, Inc (NASDAQ:OKTA) shares to $109.00, up from the previous $94.00, while maintaining a Sector Perform rating on the stock. The adjustment comes after Okta delivered a strong financial performance, exceeding Street expectations and concluding the year on a high note. According to InvestingPro analysis, Okta appears undervalued at current levels, with the stock showing impressive gross profit margins of 76.32% and maintaining strong financial health.
The company’s first-quarter CRPO (Calculated Billings) guidance was notably strong, and Okta has significantly raised its operating margin target for fiscal year 2026. The positive quarterly results led to Okta’s shares surging approximately 16% in after-hours trading. The stock’s performance has also been robust compared to the IGV (iShares Expanded Tech-Software Sector ETF), showing substantial gains year to date leading up to the earnings release. With revenue growth of 15.33% and expectations for continued profitability, InvestingPro data reveals 8 additional key insights about Okta’s financial position and growth prospects.
In his commentary, Colville acknowledged Okta’s achievements, stating, "Okta undoubtedly had a great quarter, and we want to give credit where credit is due." He highlighted several factors contributing to the company’s success, including its exposure to the cloud sector, competitive positioning in workforce identity management, the role of digital transformation in driving customer identity management adoption, and improving profit margins.
Despite the upbeat assessment of Okta’s recent performance and future prospects, Scotiabank has opted to maintain a cautious stance. Colville suggested that before adopting a more positive view on the stock, he would look for evidence of Okta’s capacity to sustain top-line growth acceleration. While there are many aspects of the company to admire, Scotiabank has decided to remain on the sidelines for the time being, watching for further signs of consistent growth. For a comprehensive analysis of Okta’s valuation and growth metrics, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Okta, Inc. reported notable fourth-quarter results that exceeded expectations, prompting several analysts to adjust their price targets. Bernstein increased its price target for Okta to $132, maintaining an Outperform rating, due to the company’s strong revenue and an improved outlook for fiscal 2026. Okta’s revenue for the quarter was $682 million, surpassing prior guidance by $14 million, and the company raised its full-year fiscal 2026 revenue forecast by $80 million.
Canaccord Genuity also raised its price target to $100, while keeping a Hold rating, acknowledging the company’s 25% growth in Remaining Performance Obligations (RPO). Citi increased its price target to $110 with a Neutral rating, highlighting Okta’s significant growth in key performance indicators and strong free cash flow. JPMorgan set a new price target of $120, maintaining an Overweight rating, and noted Okta’s effective execution and promising federal sector momentum.
Wolfe Research adjusted its target to $120, citing Okta’s strong sales productivity and profitability metrics, with operating margins exceeding expectations. The company’s Identity Governance segment reached over $100 million in Annual Contract Value (ACV), supported by over 1,300 customers. These developments reflect Okta’s resilience and potential for sustained growth, as indicated by the analysts’ revised expectations and outlook.
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