Piper Sandler raised its price target on Okta Inc. to $160 from $105 while maintaining a Neutral rating, citing accelerating bookings growth and sustained enterprise demand.
The upgrade follows Okta’s second-quarter results, which showed a 14% year-over-year increase in current remaining performance obligations, an improvement from the 12% growth recorded in the prior quarter. The company’s shares have climbed 85% over the past six months, trading at $163.69 as of Wednesday, surpassing Piper Sandler’s new target and approaching its 52-week high of $157.
Analysts at RBC Capital and DA Davidson also raised their targets, to $195 and $190 respectively, while Needham set its target at $200 and Citi lifted its target to $165. Cantor Fitzgerald maintained a $200 target. Okta’s gross margins stood at 77%, according to InvestingPro data.
The strong performance was attributed to large enterprise demand, improved partner engagement, adoption of new products, growth in federal government business, and enhancements in go-to-market strategies. Piper Sandler noted that Okta’s valuation is roughly eight times its estimated 2027 revenue, underscoring confidence in its growth trajectory despite maintaining a Neutral rating.
Early demand for AI-related products and agent security solutions was highlighted, though monetization is not expected to materially impact fiscal year 2027 results, with more significant contributions anticipated starting in fiscal year 2028.
