Susquehanna maintains Okta stock Neutral with $105 target

Published 28/05/2025, 12:50
Susquehanna maintains Okta stock Neutral with $105 target

On Wednesday, Susquehanna reaffirmed its Neutral stance on Okta, Inc. (NASDAQ:OKTA), maintaining a price target of $105.00. The decision followed Okta’s announcement of strong fiscal first quarter results, which met expectations and upheld its yearly revenue guidance. With a market capitalization of $22 billion and impressive revenue growth of 15.3% over the last twelve months, Okta has demonstrated solid performance despite management’s cautious approach due to macroeconomic concerns. According to InvestingPro data, the company maintains strong gross profit margins of 76.3%, indicating efficient operations.

Okta, recognized as a key player in the Identity and Access Management (IAM) sector, has shown potential for growth as it ventures into Privileged Access Management (PAM) and other related areas. The company’s strong financial position is evident in its balance sheet, with InvestingPro analysis showing more cash than debt. Despite the positive performance and future possibilities, including a remarkable 64% price return over the past six months, Susquehanna’s analyst highlighted the firm’s position by stating, "Our thoughts. OKTA posted solid F1Q results and maintained the annual top-line guide as management factored in macro-related conservatism. While we continue to view OKTA as a central player in IAM, with upside potential as it explores PAM and other adjacencies, we are maintaining our Neutral."

The analyst’s commentary underscores a balanced outlook on Okta’s stock, acknowledging the company’s strengths and opportunities while also considering the broader economic environment that could impact its performance. The reiteration of the $105.00 price target suggests that Susquehanna believes the stock is currently valued appropriately, given the factors at play.

Okta’s position in the market is solidified by its performance and strategic moves to expand its offerings. However, the analyst’s neutral rating indicates a wait-and-see approach, reflecting a perspective that, while optimistic about Okta’s capabilities and market position, also recognizes the uncertainties in the current economic landscape.

Investors and market watchers will likely continue to monitor Okta’s progress, particularly in its expansion efforts and how it navigates the macroeconomic conditions that have warranted a conservative outlook from its management. The stock is currently trading near its 52-week high of $127.57, reflecting strong investor confidence. For deeper insights into Okta’s valuation and growth prospects, including 13 additional ProTips and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro. The reaffirmed price target and rating provide a measured expectation for Okta’s stock performance in the near term.

In other recent news, Okta Inc . reported a strong start to its fiscal year 2026, with earnings surpassing expectations in several key areas. The company posted a 14% year-over-year increase in calculated remaining performance obligations (cRPO), slightly above the market’s expected 12%. Despite this, Okta’s second-quarter guidance for cRPO growth was more conservative, ranging between 10-11%. Analysts from Stifel, UBS, Canaccord Genuity, Cantor Fitzgerald, and Mizuho (NYSE:MFG) have all adjusted their price targets for Okta, with most setting it at $130. Stifel and Cantor Fitzgerald maintained a Buy or Overweight rating, while Canaccord Genuity kept a Hold rating. UBS and Mizuho also maintained positive ratings, with UBS reducing its price target from $150 to $130 and Mizuho from $135 to $130. Analysts highlighted Okta’s continued momentum with large customers and new products, including Auth0 and identity security solutions. The company’s full-year fiscal 2026 guidance remains cautious due to macroeconomic uncertainties, though it continues to project improvements in operating income, EPS, and free cash flow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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