On Oct 18, major Wall Street analysts update their ratings for $Okta (OKTA.US)$, with price targets ranging from $80 to $110.
Morgan Stanley analyst Hamza Fodderwala maintains with a hold rating, and maintains the target price at $100.
J.P. Morgan analyst Brian Essex maintains with a hold rating, and maintains the target price at $105.
Wells Fargo analyst Andrew Nowinski maintains with a hold rating, and adjusts the target price from $100 to $80.
Jefferies analyst Brent Thill initiates coverage with a hold rating, and sets the target price at $85.
TD Cowen analyst Shaul Eyal maintains with a hold rating, and maintains the target price at $110.
Furthermore, according to the comprehensive report, the opinions of $Okta (OKTA.US)$'s main analysts recently are as follows:
Concerns have been raised regarding Okta's delayed product rollouts historically, and the lack of full maturity and complexity, particularly with its Privileged Access Management, following observations from a recent conference.
After attending the company's user event, it was observed that management presented a balanced viewpoint to investors. It's anticipated that challenges affecting the number of workforce identity seats and monthly active users within customer identity will continue until the first half of 2026. It is suggested that Okta's efforts to gain better engagement with large enterprise clients, along with the introduction of new offerings and market growth initiatives, are expected to require additional time.
Okta continues to stand out as a prominent entity in the vital identity management sector, and its stock's valuation appears to be reasonably modest. Nevertheless, the company is encountering growing competitive challenges, particularly from major players like Microsoft. Additionally, there have been irregularities in execution over recent years, leading to a hesitance in predicting a steadfast fundamental recovery at present.
Following the Oktane 2024 event and interactions with customers, partners, and employees, there's a focus on the company's expansion with new products, growth initiatives, and challenges related to seat count. Management anticipates that these seat count challenges may continue through the first half of the next fiscal year but expects normalization in the latter half of FY26. The company's valuation is also seen as appealing.
Okta is recognized for having a comprehensive platform, however, challenges such as pricing and competition persist. Despite management pinpointing significant growth drivers, there is a sentiment that FY26 projections may be overly optimistic.
Here are the latest investment ratings and price targets for $Okta (OKTA.US)$ from 15 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
