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On Tuesday, Stifel analysts increased the price target for Okta, Inc (NASDAQ:OKTA) to $120 from the previous $115, while maintaining a Buy rating on the stock. Currently trading at $101.88, with analyst targets ranging from $75 to $140, the $17.73 billion market cap company appears to be trading below its InvestingPro Fair Value. This adjustment comes after Okta reported a robust fourth quarter for fiscal year 2025, surpassing guidance and expectations set by both Stifel and the broader market.
The company’s recent performance was highlighted by a notable acceleration in Remaining Performance Obligations (RPO) and current RPO (cRPO) growth, which saw a year-over-year increase of 24.5% and 15%, respectively. With impressive gross profit margins of 76.32% and overall revenue growth of 15.33% in the last twelve months, this growth was attributed to strengths in various areas, including Workforce Identity and Customer Identity Access Management (WIAM/CIAM), the introduction of new products, enhanced sales productivity, channel momentum, and record total and Auth0 bookings, particularly within the public sector.
While Okta demonstrated considerable strengths, some metrics such as Net Retention Rate (NRR) and new logo additions did not show the same level of robustness. Despite this, the company’s guidance for the first quarter of fiscal year 2026 and the full fiscal year 2026 forecasts were set higher than anticipated, with expectations of a 9-10% year-over-year growth compared to the previously estimated 7%.
Stifel’s analysis suggests that Okta is on a positive trajectory, with multiple avenues to further drive growth. The firm’s confidence is bolstered by the increasing importance of identity security, Okta’s expanding product portfolio in both workforce and customer identity, early success with new offerings, improved go-to-market productivity, and the potential of emerging Agentic-AI opportunities. InvestingPro analysis supports this outlook, with a "GOOD" overall financial health score and multiple positive indicators, including strong cash position and expected profit growth. For deeper insights into Okta’s financial health and growth prospects, check out the comprehensive Pro Research Report, available exclusively on InvestingPro along with 8 additional ProTips. The overall sentiment is that the company’s guidance for the coming year is likely to be conservative and that Okta is well-positioned for continued growth.
In other recent news, Okta, Inc. has reported strong fourth-quarter fiscal year 2025 earnings, which have led several analyst firms to adjust their price targets for the company’s stock. Piper Sandler raised its price target to $135, citing Okta’s robust fiscal fourth-quarter performance and positive outlook for 2026. Oppenheimer also lifted its target to $135, reflecting confidence in Okta’s business growth and product suite expansion. Meanwhile, Scotiabank (TSX:BNS) increased its target to $109, acknowledging Okta’s strong financial performance and improved operating margin targets for fiscal year 2026.
Bernstein SocGen Group raised its price target to $132, highlighting Okta’s revenue of $682 million, which exceeded previous guidance, and the company’s positive revenue forecast for fiscal 2026. Canaccord Genuity adjusted its target to $100, noting Okta’s 25% growth in Remaining Performance Obligations (RPO) and its higher-than-anticipated fiscal year 2026 guidance. Despite these positive developments, Okta’s management remains cautious due to a mixed macroeconomic environment. However, firms like Oppenheimer see potential for additional upside if conditions improve.
Overall, Okta’s recent financial results and strategic initiatives have garnered positive reactions from analysts, indicating confidence in the company’s growth trajectory and market position.
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