TSX runs higher on rate cut expectations
Investing.com - Stifel maintained its Buy rating and $130.00 price target on Okta, Inc (NASDAQ:OKTA) following the company’s better-than-expected quarterly results. The identity management firm, currently valued at $16.1 billion, has demonstrated strong financial health with impressive gross margins of 76.7%.
Okta shares rose 6% in after-hours trading after the identity management firm reported results that exceeded guidance and analyst estimates across all key metrics. According to InvestingPro, 41 analysts have recently revised their earnings estimates upward, with the stock currently trading above its Fair Value.
The company demonstrated strength in several focus areas including new products, large enterprises, public sector, and Auth0, with both the demand environment and execution outperforming conservative assumptions.
Following the solid quarter, Okta raised its fiscal year 2026 guidance by more than the quarterly beat and provided third-quarter current remaining performance obligations (cRPO) guidance of 10% year-over-year growth, exceeding some analyst expectations.
Okta also announced the acquisition of Axiom, described as an acquihire that helps complete its Privileged Access Management (PAM) offering, with more announcements expected at the upcoming Oktane user conference next month.
In other recent news, Okta, Inc reported strong fiscal second-quarter results, exceeding expectations across key metrics such as revenue, current remaining performance obligations (cRPO), operating margin, and earnings per share. The company also improved its outlook for the second half of the year regarding revenue and remaining performance obligations. UBS reiterated its Buy rating on Okta with a $130 price target, citing the company’s strong quarterly performance. Cantor Fitzgerald also maintained its Overweight rating with the same price target, highlighting Okta’s performance above consensus estimates.
Bernstein SocGen Group adjusted its price target on Okta to $129 from $132, maintaining an Outperform rating after the company’s earnings report showed a 2.4% revenue beat. Mizuho reiterated its Outperform rating with a $120 price target, noting the company’s 13.5% year-over-year growth in cRPO, which surpassed Wall Street’s expectations. RBC Capital raised its price target to $115 from $113, maintaining an Outperform rating due to Okta’s better-than-expected quarterly performance. These recent developments reflect a generally positive outlook from analysts on Okta’s financial health and execution.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.