Citi increased its price target for Okta Inc. (NASDAQ: OKTA) to $165 from $105 while maintaining a Buy rating, following the company’s second fiscal quarter of 2027 results that exceeded expectations.
The upgrade reflects Okta’s record bookings for a non-fourth-quarter period, driven by demand from large enterprises, new product adoption, U.S. federal government contracts, and improved go-to-market execution. Remaining Performance Obligations (RPO) rose 14.1% year-over-year, exceeding consensus by more than 300 basis points. Gross margins remained steady at 77%, according to InvestingPro data.
New artificial intelligence offerings contributed 30% of total bookings, with an average annual contract value increase of 40% for customers adopting the products. Analysts noted that Okta’s AI portfolio is not expected to become material to financial performance until fiscal 2028.
Okta’s stock has climbed 85% over the past six months, closing at $134.42 at the time of the report. Other firms also revised targets upward: Needham raised its target to $200, while Cantor Fitzgerald, Canaccord, Scotiabank, and TD Cowen set new targets of $200, $175, $190, and $175, respectively. TD Cowen cited Okta’s revenue growth of 11% year-over-year as a key driver behind its upgrade.
The upgrades follow Okta’s Q2 fiscal 2027 results, which surpassed market projections across all key metrics.
