On Wednesday, Piper Sandler maintained a Neutral rating on Okta, Inc (NASDAQ:OKTA), a $14.5 billion market cap identity management company with impressive 75.8% gross margins, while raising the price target to $90 from $85.
The adjustment followed the company's third-quarter results, which featured a slight uptick in calculated remaining performance obligations (cRPO) growth. Despite this, the analyst at Piper Sandler noted that other trends did not significantly alter the investment thesis for Okta.
Looking ahead, the analyst provided a preliminary forecast of approximately 7% revenue growth for fiscal year 2026. This projection was described as conservative and indicative of ongoing uncertainty regarding the timing of a potential growth inflection for Okta.
The summary of the third-quarter performance and future outlook culminated in the decision to remain Neutral on Okta's stock, albeit with a slightly improved price target of $90. The report concluded with the observation that while there was a modest acceleration in cRPO growth, the broader trends did not warrant a change in the Neutral stance.
In other recent news, Okta Inc (NASDAQ:OKTA). continues to draw the attention of various investment firms following its robust financial performance.
Citi maintained a Neutral rating on Okta but raised its price target to $95, reflecting strong performance in federal deals. BMO Capital Markets also increased its price target for Okta to $105, acknowledging the company's strong results. Meanwhile, KeyBanc maintained a Sector Weight on Okta, expressing a positive outlook on the company's potential role as a consolidator of identity services.
Needham increased its stock price target for Okta to $115, maintaining a Buy rating, following improved company performance. Lastly, Scotiabank (TSX:BNS) raised its price target for Okta to $96, maintaining a Sector Perform rating. These adjustments were largely influenced by Okta's stronger than expected results, including a significant year-over-year increase in Remaining Performance Obligations (RPO) and calculated Remaining Performance Obligations (cRPO) that exceeded estimates.
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