Scotiabank raised its price target on Okta Inc. to $190 from $165 on Wednesday, maintaining a Sector Outperform rating as the identity management firm benefits from momentum in AI agent security deals.
The upward revision follows a 20% after-hours surge in Okta’s stock, which has climbed 85% over the past six months. Scotiabank now values the company at roughly 28 times its calendar 2027 estimated EBITDA, reflecting confidence in its growth trajectory.
Okta’s fiscal second-quarter 2027 results showed revenue growth of 11% year-over-year, exceeding the 9% consensus estimate. Current remaining performance obligations (cRPO) reached $2.59 billion, up 14% from a year ago and surpassing expectations of $2.51 billion. New annual contract value rose over 50%, while gross profit margin held steady at 77%.
The company highlighted dozens of AI agent-related deals in the quarter, including several exceeding $1 million. One energy sector CISO increased Okta spending by $1.5 million after adopting the platform for AI agent security. Management reiterated its guidance philosophy, noting cRPO growth is expected to accelerate for a third consecutive quarter in the fiscal third period.
Scotiabank’s upgrade aligns with a broader shift among analysts. TD Cowen raised its target to $175 with a Hold rating, BofA Securities lifted its target to $170 and upgraded Okta to Neutral from Underperform, and Guggenheim set a $188 target with a Buy rating. BMO Capital and Stifel also raised their targets to $187 and $180, respectively.
Okta’s market capitalization stands at $23.4 billion. The company cited ongoing identity infrastructure modernization efforts in 2026, including projects with a large financial services firm and a $20 billion retailer, as further evidence of demand for its platform.
