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On Tuesday, TD Cowen maintained a Hold rating on Okta, Inc (NASDAQ:OKTA) with a steady price target of $110.00. According to InvestingPro data, Okta is currently trading near its Fair Value, with a market capitalization of $17.69 billion. The firm’s analyst, Shaul Eyal, highlighted Okta’s impressive close to fiscal year 2025, noting a Rule-of-54 performance, which combines revenue growth and free cash flow margin. For the fourth quarter of 2025, Okta reported a 13% year-over-year revenue increase and a 25% year-over-year growth in Remaining Performance Obligations (RPO), primarily driven by significant engagement from large customers and the successful introduction of new products.
The company’s record profitability and cash flow have propelled its Rule-of-X metric to 54, indicating robust financial health. This is reflected in InvestingPro’s Financial Health Score of "GOOD" and impressive gross profit margins of 76.32%. Okta’s fiscal year 2026 guidance suggests continued strong performance, with revenue expected to rise between 9% and 10%, building on its current revenue growth of 15.33%, alongside healthy free cash flow margins projected at 26%.
During its earnings call, Okta emphasized a growing market preference for comprehensive platform solutions. The company’s strategic focus on security, continuous innovation in product offerings, effective land and expand strategy, and an increasingly efficient ecosystem are key factors in meeting this market demand. Okta aims to leverage these strengths as it pursues a total addressable market (TAM) of $80 billion. For deeper insights into Okta’s market position and growth potential, check out the comprehensive Pro Research Report available exclusively on InvestingPro, along with 8 additional ProTips and extensive financial metrics.
Eyal’s commentary reflects confidence in Okta’s ability to capitalize on these opportunities, yet the firm’s Hold rating and $110 price target remain unchanged. The target is based on an enterprise value to FY27 estimated revenue multiple of approximately 5 times. Okta’s performance and forward-looking guidance signal a positive trajectory as the company navigates the expanding cybersecurity landscape, with InvestingPro data showing the company has maintained profitability over the last twelve months and is expected to grow its net income this year.
In other recent news, Okta, Inc. has reported strong financial results, prompting several analyst firms to adjust their price targets and ratings for the company. RBC Capital Markets raised its price target for Okta to $120, citing robust quarterly results and an accelerated year-over-year growth in current Remaining Performance Obligations (cRPO). Stifel also increased its price target to $120, highlighting Okta’s impressive fourth-quarter performance and noting strengths in Workforce Identity and Customer Identity Access Management. Piper Sandler set a higher price target of $135, maintaining an Overweight rating due to Okta’s strong fiscal fourth quarter and potential to expand into Identity Governance and Administration.
Oppenheimer joined in by raising its price target to $135, recognizing Okta’s growth with large customers and successful product cross-selling. The firm noted that Okta’s strong sales strategy and comprehensive product suite are key drivers for its performance. Meanwhile, Scotiabank (TSX:BNS) increased its price target to $109, acknowledging Okta’s strong financial performance and significant operating margin target for fiscal year 2026. Despite the positive results, Scotiabank maintained a Sector Perform rating, suggesting a cautious approach while observing Okta’s ability to sustain growth.
These recent developments reflect a positive outlook on Okta’s growth trajectory, with analysts expressing confidence in the company’s future performance. The adjustments in price targets and ratings underscore the promising financial developments and strategic advancements made by Okta in recent quarters.
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