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Investing.com -- Truist upgraded Okta to Buy from Hold, saying the identity security firm is approaching an inflection point as near-term growth pressures ease and its all-in-one platform gains momentum.
Brokerage also raised its price target to $125 from $100 ahead of its earnings
Analysts at Truist said seat count pressures and disruption from changes in Okta’s sales approach should begin to subside in the second half of fiscal 2026. At the same time, demand is strengthening for Okta’s broader identity offerings, which include governance and privileged access management.
Truist also pointed to early opportunities in machine identity, a growing market where Okta already has the core tools to compete.
Truist expects Okta’s position as a leading provider of single sign-on and multi-factor authentication to help it capture share as organizations consolidate identity security vendors.
It said consolidation is likely to be gradual but favors providers with large installed bases and broad product coverage.
The note also highlighted progress from Okta’s revised sales model, which separates teams by customer identity and workforce identity. Truist cited early gains among smaller U.S. businesses and rising traction in the public sector as encouraging signs that the company’s go-to-market strategy is improving.
Okta will report second-quarter results on Aug. 26. Truist said it will watch for continued growth in larger accounts and signs of improved sales productivity.
The brokerage said full-year guidance remains cautious but could prove conservative as renewal pressures tied to pandemic-era seat purchases begin to fade later in the year.