Stifel raises Okta stock price target to $130 after earnings beat

On Wednesday, Stifel analysts adjusted their outlook on Okta, Inc. (NASDAQ:OKTA), raising the price target from $120.00 to $130.00 while maintaining a Buy rating. This change follows Okta’s first-quarter fiscal year 2026 earnings release, which showcased the company outperforming guidance and expectations on key metrics. According to InvestingPro data, Okta maintains strong financial health with an impressive 76.32% gross profit margin and robust revenue growth of 15.33% over the last twelve months.

Okta’s financial report indicated a year-over-year increase in calculated remaining performance obligations (cRPO) of 14%, surpassing the anticipated 12%. However, the cRPO growth fell short of the unofficial market expectations of 15%-16%. The company’s shares experienced a decline of over 12% in after-hours trading, a reaction attributed to the cRPO figures, conservative second-quarter cRPO guidance, higher short interest, and a substantial year-to-date stock price increase of 59%, notably outperforming the Nasdaq’s year-to-date decline of 0.6%. InvestingPro analysis shows the stock trading near its 52-week high of $127.57, with 13 additional key insights available to subscribers.

Despite the after-hours trading dip, Stifel highlighted several positive aspects of Okta’s performance. These include promising developments in the company’s go-to-market strategy adjustments, increased traction with Auth0 and new logos, and continued momentum with newer products.

Management’s commentary regarding the company’s outlook remains cautious yet optimistic. While no significant impacts were reported in April or early May, Okta’s guidance incorporates a conservative stance. The full-year fiscal 2026 revenue forecast was reaffirmed, with profitability expected to improve, albeit less substantially than the recent earnings beat might suggest.

In other recent news, Okta, Inc. has experienced a range of analyst evaluations following its first-quarter fiscal year 2026 earnings report. UBS has adjusted its price target for Okta to $130 while maintaining a Buy rating, noting that the company’s revenue slightly exceeded expectations and highlighted a modest growth in calculated remaining performance obligations (cRPO). Canaccord Genuity raised its price target to $115, retaining a Hold rating, and emphasized Okta’s strong position in the Zero Trust security market. Cantor Fitzgerald maintained an Overweight rating with a $130 target, pointing out Okta’s robust quarterly performance and its updated fiscal year guidance for operating income and free cash flow. Mizuho (NYSE:MFG) also lowered its target to $130 but kept an Outperform rating, commending Okta’s growth and integration of new products. Wolfe Research reduced its price target to $130, maintaining an Outperform rating, and noted that while Okta’s guidance appears conservative, there is potential for revenue and free cash flow margin upside. These developments reflect a cautious yet optimistic outlook on Okta’s market position and future growth potential.

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