Okta set to join S&P MidCap 400

Written by Emily J. Thompson, Senior Investment Analyst

OKTA-0.77%

BERY%

Source: SeekingAlpha

Updated: Apr 29 2025

0mins

Source: SeekingAlpha

S&P MidCap 400 Update: Okta will replace Berry Global Group in the S&P MidCap 400 effective May 1, following Amcor's acquisition of Berry Global Group.
Market Sentiment on Okta: Analysts have expressed skepticism about Okta's management and performance, leading to recent downgrades in ratings for the company.

OKTA

$93.35+Infinity%1D

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: 94.070

Low

75.00

Averages

120.93

High

145.00

Current: 94.070

Low

75.00

Averages

120.93

High

145.00

RBC Capital

Matthew Hedberg

Outperform

maintain

$97 -> $108

Al Analysis

2026-01-05

Reason

RBC Capital

Matthew Hedberg

Price Target

$97 -> $108

Al Analysis

2026-01-05

maintain

Outperform

Reason

RBC Capital analyst Matthew Hedberg raised the firm's price target on Okta to $108 from $97 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

Piper Sandler

Neutral

maintain

$95 -> $100

2026-01-05

Reason

Piper Sandler

Price Target

$95 -> $100

2026-01-05

maintain

Neutral

Reason

Piper Sandler raised the firm's price target on Okta to $100 from $95 and keeps a Neutral rating on the shares. The firm says 2025 proved to be a tough year for its Security & Infrastructure Software coverage, with the average name showing negative performance and only four names outperforming the NASDAQ. Piper is cautiously optimistic for a better year in 2026, with many names entering the year at interesting valuation levels setup well to be longer-term GenAI winners, despite monetization at the software layer not yet occurring at scale.

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Stephens

Equal Weight

maintain

2025-12-29

Reason

Stephens

Price Target

2025-12-29

maintain

Equal Weight

Reason

Stephens walked away from the firm's recent fireside chat with Okta with a greater appreciation for the company's growth opportunity with Auth0, says the analyst, who believes a significant, underpenetrated growth opportunity remains with roughly 50% of the Customer Identity and Access Management market still relying on homegrown solutions. The timing and magnitude remain uncertain, but the firm believes Auth0 "adds to the case for Okta approaching a potential growth inflection point," adds the analyst, who maintains an Equal Weight rating on Okta shares.

Jefferies

Joseph Gallo

Hold -> Buy

upgrade

$90 -> $125

2025-12-16

Reason

Jefferies

Joseph Gallo

Price Target

$90 -> $125

2025-12-16

upgrade

Hold -> Buy

Reason

Jefferies analyst Joseph Gallo upgraded Okta to Buy from Hold with a price target of $125, up from $90, as part of its 2026 software outlook. Okta has a "significant opportunity" as it attempts to build out a complete identity platform and capture growing agentic demand, the analyst tells investors in a research note. The firm believes the stock's value dislocation "has become too significant" as the company faces several fundamental catalysts in fiscal 2027 from improved execution, secular agentic tailwinds, and potential for positive estimate revisions.

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.