Okta Inc.'s stock price target was lifted by DA Davidson on strong quarterly performance, with the firm raising its target to $190 from $165 while maintaining a Buy rating.
The upgrade follows Okta's second-quarter fiscal 2027 results, which exceeded guidance and analyst estimates. Remaining performance obligations grew 14% year-over-year, up from 12% in the prior quarter, while the company reported revenue of approximately $3 billion over the last twelve months.
DA Davidson highlighted accelerated annual contract value growth in both Workforce and Customer Identity and Access Management segments, alongside strong contributions from Okta Identity Governance. Sales productivity improvements were also cited as a key driver of the upward revision.
The firm's move aligns with a broader trend among analysts, as several peers raised their price targets on Okta. Needham and Cantor Fitzgerald both increased their targets to $200, while Canaccord set a new target of $175. Citi maintained its Buy rating but lifted its target to $165. Scotiabank raised its target to $190.
Okta's shares have surged 85% over the past six months, reflecting strong market confidence. The company's third-quarter guidance for current remaining performance obligations growth was projected at 11% to 12% year-over-year, an improvement from the prior quarter's 11% guidance.
Analysts noted that growth was achieved without significant contributions from AI Agents, though further acceleration is expected as these products roll out. The quarter also saw record bookings for a non-fourth quarter period, driven by large enterprise traction, new product launches, and federal government contracts. Several seven-figure deals exceeding $1 million were signed during the period.
