Okta’s stock rose on Thursday after Bernstein raised its price target to $143 from $141 while maintaining an Outperform rating, as the identity management company reported its strongest bookings performance in a non-fiscal fourth quarter.
The company’s shares, which were trading at $165.27 at the close, have gained 85% over the past six months. Bernstein’s Peter Weed noted that the quarter "finally showed what we’ve been expecting for a long time," pointing to a rebound in subscription growth and a sharp acceleration in current remaining performance obligations (cRPO).
cRPO, a key metric for subscription-based businesses, increased by nearly 2 percentage points quarter-over-quarter, reaching a 14.1% year-over-year growth rate. KeyBanc highlighted that cRPO exceeded expectations by $76 million, reinforcing the positive outlook.
Okta also raised its fiscal 2027 guidance by an amount equivalent to twice its second-quarter earnings beat, signaling confidence in sustained demand. The company’s gross profit margin stood at 77%, according to InvestingPro data.
Other analysts followed suit, with KeyBanc lifting its target to $190, Piper Sandler to $160, RBC Capital to $195, DA Davidson to $190, and Citi initiating coverage at $165. Okta’s stock has approached its 52-week high of roughly $157, reflecting growing investor optimism.
The fiscal second quarter of 2027 results underscore a broader recovery in Okta’s core metrics, including a 9-basis-point improvement in subscription growth quarter-over-quarter.
