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Investing.com - TD Cowen has reiterated its Hold rating and $115.00 price target on Okta, Inc (NASDAQ:OKTA), currently trading at $93.46, following the company’s second-quarter fiscal 2026 results. According to InvestingPro data, the company’s current market capitalization stands at $16.43 billion.
The identity management firm reported 13% year-over-year revenue growth, exceeding estimates of 10%, along with 18% RPO (remaining performance obligation) growth and strong cash flow of $167 million versus the expected $143 million. The company maintains impressive gross profit margins of 76.69%, according to InvestingPro data.
TD Cowen attributed the strong performance to large customers, Auth0, new products, and the Public Sector vertical, noting that Okta has expressed improved confidence in its outlook for the macroeconomic environment and the Federal vertical. This optimism is reflected in analyst sentiment, with current consensus targets ranging from $75 to $142 per share.
On a trailing twelve-month basis, Okta delivered what TD Cowen called a "Rule of 43 performance," combining revenue growth and free cash flow margin, while addressing an $80 billion total addressable market driven by enterprise clients that increasingly prefer platform solutions.
The $115 price target maintained by TD Cowen reflects an enterprise value to fiscal year 2027 estimated revenue multiple of approximately 6x.
In other recent news, Okta, Inc. reported strong fiscal second-quarter results, exceeding expectations across all key performance metrics. The company raised its fiscal year 2026 revenue guidance by $25 million and improved its EBIT and free cash flow margins. Despite these positive developments, BMO Capital lowered its price target for Okta to $112, citing concerns about growth durability, although it modestly increased its fiscal year 2026 estimates. Piper Sandler maintained a Neutral rating with a $110 price target, acknowledging improved execution in the second quarter. KeyBanc reiterated an Overweight rating and set a $140 price target, noting the company’s solid performance and growth in current remaining performance obligations. Stifel and UBS both maintained Buy ratings with $130 price targets, highlighting the company’s better-than-expected results and positive outlook for the second half of the year. These developments reflect a mix of optimism and caution among analysts regarding Okta’s future growth prospects.
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