Okta Upgraded as AI Trend Boosts Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy OKTA?
Source: CNBC
- Upgrade Announcement: Raymond James upgraded Okta's rating from market perform to outperform with a price target of $85, indicating a 26.2% upside from Wednesday's close, reflecting optimistic market expectations for future growth.
- AI Market Opportunity: Analysts noted that with the rise of agentic AI, Okta's core total addressable market has significant growth potential, especially as AI transitions from experimentation to production in enterprise use cases, driving demand for identity security.
- Revenue Growth Potential: By expanding into cybersecurity services such as identity governance and privileged access management, Okta can generate additional revenue, with analysts suggesting this expansion presents an intriguing consolidation story to meet evolving security needs.
- Market Confidence Recovery: Okta appears to have cleared a major headwind that caused its stock to drop from $200 to around $60, with analysts predicting a rebound in future growth as contract renewals stabilize, enhancing market confidence in its prospects.
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Analyst Views on OKTA
Wall Street analysts forecast OKTA stock price to rise
31 Analyst Rating
22 Buy
8 Hold
1 Sell
Moderate Buy
Current: 72.250
Low
75.00
Averages
114.03
High
145.00
Current: 72.250
Low
75.00
Averages
114.03
High
145.00
About OKTA
Okta, Inc. is an independent identity partner. The Company's Okta Platform and Auth0 Platform enable its customers to securely connect the right people to the right technologies and services at the right time. It offers independent and neutral cloud-based identity solutions that allow customers to integrate with nearly any application, service or cloud that they choose through its platforms. Organizations use the Company's platforms to securely access a wide range of cloud, mobile, web and Software-as-a-Service applications, on-premises servers, application programming interfaces, IT infrastructure providers, and services from a multitude of devices. Developers leverage its Okta Platform and Auth0 Platform to securely and efficiently embed identity for both human users and, increasingly, AI agents into the software they build. Auth0 for AI Agents enables developers to leverage the Auth0 Platform to secure and scale agentic applications from pilot to production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Major Wall Street Rating Updates on Monday
- Tesla Rating Adjustment: Jefferies raised Tesla's price target from $300 to $350, anticipating Q1 results will show a widening gap between vision and execution, and concerns about funding may arise without a convincing robotaxi announcement, potentially leading to merger considerations with SpaceX.
- Apple's Positive Outlook: Morgan Stanley reiterated Apple as overweight, expecting a modest 1-2% upside in revenue and EPS in the upcoming earnings report, despite supply constraints, indicating the company's resilience in the market.
- Amazon Price Target Increase: Bank of America raised Amazon's price target from $275 to $298, believing that with strong assets and customer focus, Amazon is well-positioned to capitalize on the global growth of eCommerce and enterprise demand for AI capabilities, showcasing robust growth potential.
- Microsoft's Favorable Outlook: Deutsche Bank reiterated Microsoft as a buy, expecting Azure's performance and guidance to be focal points in the upcoming earnings report, indicating that the company's broad progress in AI initiatives will drive future growth.
See More
Barclays Upgrades Okta Amid AI Demand Surge
- Rating Upgrade: Barclays upgraded Okta from equal weight to overweight and raised its price target from $85 to $90, indicating a 24.6% upside from Friday's close, reflecting strong confidence in Okta's position in identity security.
- Growing Market Demand: As identity security emerges as the top spending priority in CIO surveys, Okta's demand and execution have improved, with analysts noting that recent feedback on Okta has been more positive than in previous quarters, indicating healthier underlying demand and stronger channel engagement.
- Agentic AI Opportunity: The rise of agentic AI presents new business opportunities for Okta, as analysts suggest that agentic AI is viewed as an identity problem, with Okta's identity management platform connecting both humans and AI agents, potentially leading to more deals.
- Market Consensus Support: Among the 47 analysts covering Okta, 33 have a buy or strong buy rating, aligning Barclays' upgrade with market consensus, and despite a 16% decline in Okta's stock this year, analysts remain optimistic about its future performance.
See More
US Stocks Close Higher with Chipmakers Rallying
- Market Recovery: On Thursday, the S&P 500 rose by 0.26% and the Nasdaq 100 by 0.49%, reaching new highs, indicating a strong rebound after early losses and reflecting investor confidence in economic recovery.
- Chip Sector Boost: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, highlighting strong AI demand, which propelled chipmakers' stock prices, particularly benefiting major suppliers to Nvidia and Apple, further enhancing market optimism.
- Oil Price Impact: Despite the stock market gains, crude oil prices surged over 3%, raising concerns about the Middle East situation and limiting the market's upward momentum, illustrating the potential impact of energy prices on the overall economy.
- Mixed Economic Data: Initial jobless claims fell to 207,000, exceeding expectations and indicating labor market strength, but unexpected declines in manufacturing production reflect economic uncertainty, which could influence future monetary policy.
See More
US Stocks Dip Slightly as Chipmakers Weigh on Market
- Market Performance: The S&P 500 index fell by 0.15%, the Dow Jones Industrial Average decreased by 0.06%, and the Nasdaq 100 dropped by 0.21%, indicating a slight market pullback after reaching new highs, particularly pressured by weakness in chipmakers.
- Economic Data: Initial jobless claims in the US fell by 11,000 to 207,000, indicating a stronger labor market than the expected 213,000; additionally, the Philadelphia Fed business outlook unexpectedly rose by 8.6 to a 15-month high of 26.7, reflecting potential economic recovery.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% as the US naval blockade of the Strait of Hormuz enters its fourth day, which could exacerbate global oil and fuel shortages, impacting future energy market stability.
- Earnings Season: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the technology sector, the earnings growth is only 3%, the lowest in two years, indicating a cautious market outlook on profit growth.
See More
US Stocks Rise Slightly, Chipmakers Rebound
- Chipmaker Rebound: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, reflecting strong AI demand, which led to a rebound in chipmakers, with ON Semiconductor up over 10% and AMD up over 5%, indicating renewed market confidence in tech stocks.
- Mixed Economic Data: Initial jobless claims fell to 207,000, below the expected 213,000, suggesting a strong labor market; however, manufacturing production unexpectedly declined by 0.1%, highlighting the unevenness of economic recovery, which could influence future policy decisions.
- Oil Price Surge Impact: WTI crude oil prices rose over 2% due to escalating tensions between Iran and the US, potentially exacerbating global oil and fuel shortages, which negatively affects airline and cruise line profitability, leading to declines in related stocks.
- Earnings Season Begins: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the tech sector, growth is only expected at 3%, raising concerns about the profitability of non-tech stocks and potentially impacting investor confidence.
See More
Okta Upgraded as AI Demand Drives Growth Potential
- Rating Upgrade: Raymond James upgraded Okta from Market Perform to Outperform, driven by the increasing demand for identity security due to the rise of AI agents, resulting in a 6% share price increase during early trading.
- Revenue Growth Potential: Analysts highlighted that as AI moves from experimentation to production in enterprise use cases, Okta's total addressable market (TAM) is expected to see significant growth, with revenue growth projected to exceed 10% in the future.
- Contract Renewal Impact: Okta's revenue is set to benefit from the end of downsized contracts related to COVID-19, with analysts noting that the average contract duration nearing three years will alleviate previous renewal pressures, leading to an optimistic growth outlook.
- Product Market Feedback: Okta's AI agent product, launched in 2025, has been purchased and is in production by several companies, with CEO Todd McKinnon stating that the rapid adoption reflects strong market demand for identity management, indicating a significant opportunity for technological transformation.
See More
Major Wall Street Rating Updates on Monday
- Tesla Rating Adjustment: Jefferies raised Tesla's price target from $300 to $350, anticipating Q1 results will show a widening gap between vision and execution, and concerns about funding may arise without a convincing robotaxi announcement, potentially leading to merger considerations with SpaceX.
- Apple's Positive Outlook: Morgan Stanley reiterated Apple as overweight, expecting a modest 1-2% upside in revenue and EPS in the upcoming earnings report, despite supply constraints, indicating the company's resilience in the market.
- Amazon Price Target Increase: Bank of America raised Amazon's price target from $275 to $298, believing that with strong assets and customer focus, Amazon is well-positioned to capitalize on the global growth of eCommerce and enterprise demand for AI capabilities, showcasing robust growth potential.
- Microsoft's Favorable Outlook: Deutsche Bank reiterated Microsoft as a buy, expecting Azure's performance and guidance to be focal points in the upcoming earnings report, indicating that the company's broad progress in AI initiatives will drive future growth.
See More
Barclays Upgrades Okta Amid AI Demand Surge
- Rating Upgrade: Barclays upgraded Okta from equal weight to overweight and raised its price target from $85 to $90, indicating a 24.6% upside from Friday's close, reflecting strong confidence in Okta's position in identity security.
- Growing Market Demand: As identity security emerges as the top spending priority in CIO surveys, Okta's demand and execution have improved, with analysts noting that recent feedback on Okta has been more positive than in previous quarters, indicating healthier underlying demand and stronger channel engagement.
- Agentic AI Opportunity: The rise of agentic AI presents new business opportunities for Okta, as analysts suggest that agentic AI is viewed as an identity problem, with Okta's identity management platform connecting both humans and AI agents, potentially leading to more deals.
- Market Consensus Support: Among the 47 analysts covering Okta, 33 have a buy or strong buy rating, aligning Barclays' upgrade with market consensus, and despite a 16% decline in Okta's stock this year, analysts remain optimistic about its future performance.
See More
US Stocks Close Higher with Chipmakers Rallying
- Market Recovery: On Thursday, the S&P 500 rose by 0.26% and the Nasdaq 100 by 0.49%, reaching new highs, indicating a strong rebound after early losses and reflecting investor confidence in economic recovery.
- Chip Sector Boost: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, highlighting strong AI demand, which propelled chipmakers' stock prices, particularly benefiting major suppliers to Nvidia and Apple, further enhancing market optimism.
- Oil Price Impact: Despite the stock market gains, crude oil prices surged over 3%, raising concerns about the Middle East situation and limiting the market's upward momentum, illustrating the potential impact of energy prices on the overall economy.
- Mixed Economic Data: Initial jobless claims fell to 207,000, exceeding expectations and indicating labor market strength, but unexpected declines in manufacturing production reflect economic uncertainty, which could influence future monetary policy.
See More
US Stocks Dip Slightly as Chipmakers Weigh on Market
- Market Performance: The S&P 500 index fell by 0.15%, the Dow Jones Industrial Average decreased by 0.06%, and the Nasdaq 100 dropped by 0.21%, indicating a slight market pullback after reaching new highs, particularly pressured by weakness in chipmakers.
- Economic Data: Initial jobless claims in the US fell by 11,000 to 207,000, indicating a stronger labor market than the expected 213,000; additionally, the Philadelphia Fed business outlook unexpectedly rose by 8.6 to a 15-month high of 26.7, reflecting potential economic recovery.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% as the US naval blockade of the Strait of Hormuz enters its fourth day, which could exacerbate global oil and fuel shortages, impacting future energy market stability.
- Earnings Season: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the technology sector, the earnings growth is only 3%, the lowest in two years, indicating a cautious market outlook on profit growth.
See More
US Stocks Rise Slightly, Chipmakers Rebound
- Chipmaker Rebound: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, reflecting strong AI demand, which led to a rebound in chipmakers, with ON Semiconductor up over 10% and AMD up over 5%, indicating renewed market confidence in tech stocks.
- Mixed Economic Data: Initial jobless claims fell to 207,000, below the expected 213,000, suggesting a strong labor market; however, manufacturing production unexpectedly declined by 0.1%, highlighting the unevenness of economic recovery, which could influence future policy decisions.
- Oil Price Surge Impact: WTI crude oil prices rose over 2% due to escalating tensions between Iran and the US, potentially exacerbating global oil and fuel shortages, which negatively affects airline and cruise line profitability, leading to declines in related stocks.
- Earnings Season Begins: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the tech sector, growth is only expected at 3%, raising concerns about the profitability of non-tech stocks and potentially impacting investor confidence.
See More
Okta Upgraded as AI Demand Drives Growth Potential
- Rating Upgrade: Raymond James upgraded Okta from Market Perform to Outperform, driven by the increasing demand for identity security due to the rise of AI agents, resulting in a 6% share price increase during early trading.
- Revenue Growth Potential: Analysts highlighted that as AI moves from experimentation to production in enterprise use cases, Okta's total addressable market (TAM) is expected to see significant growth, with revenue growth projected to exceed 10% in the future.
- Contract Renewal Impact: Okta's revenue is set to benefit from the end of downsized contracts related to COVID-19, with analysts noting that the average contract duration nearing three years will alleviate previous renewal pressures, leading to an optimistic growth outlook.
- Product Market Feedback: Okta's AI agent product, launched in 2025, has been purchased and is in production by several companies, with CEO Todd McKinnon stating that the rapid adoption reflects strong market demand for identity management, indicating a significant opportunity for technological transformation.
See More
