Citi Initiates 90-Day Catalyst Watch on Okta (OKTA), Forecasts Strong FY26 Close
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Performance Outlook Upgrade: Citi analyst Fatima Boolani highlights that Okta is expected to close FY26 strongly with bookings outperforming expectations, supporting future revenue revisions and reflecting the company's competitiveness in the cybersecurity sector.
- Growing Market Demand: The CISO survey indicates an increasing prioritization of the identity cybersecurity sub-segment, suggesting a rising demand among CISOs for 'securing agentic AI', which will drive Okta's market share and revenue growth.
- Optimistic Financial Projections: Okta's revenue growth for FY27 is anticipated to reach approximately 9% YoY, with strong expectations for FY26 Q4 performance (cRPO growth exceeding low double digits) further bolstering investor confidence.
- Stock Buyback Initiative: The newly launched $1 billion stock buyback plan is expected to support stock price appreciation, as the current valuation is near trough levels (around 4x EV/S NTM and 15x EV/FCF NTM), providing a favorable entry point for investors.
Analyst Views on OKTA
Wall Street analysts forecast OKTA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKTA is 120.93 USD with a low forecast of 75.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
21 Buy
11 Hold
1 Sell
Moderate Buy
Current: 92.230
Low
75.00
Averages
120.93
High
145.00
Current: 92.230
Low
75.00
Averages
120.93
High
145.00
About OKTA
Okta, Inc. is an independent identity partner. The Company’s Okta Platform and Auth () 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 Identity Platform to collaborate with their partners, and to provide their customers with secure experiences in the cloud and via mobile devices. Developers leverage the Workforce Identity Cloud and Customer Identity Cloud, powered by Auth (), to securely and efficiently embed identity into the software they build, allowing them to innovate and focus on their core missions. Its Okta Platform enables its customers to automate and secure access across their ecosystem of employees, contractors and partners, increasing collaboration across their workforces.
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.
