TD Cowen has maintained its Hold rating on Okta, Inc. (NASDAQ: NASDAQ:OKTA) with a consistent price target of $110.00.
The firm's analysis followed insights from Okta's recent Oktane Investor Day, where several key initiatives were discussed that could potentially reaccelerate revenue growth in the second half of fiscal year 2026.
The analyst highlighted three main takeaways from the event. First, Okta's recent product developments and go-to-market strategies are aimed at revenue reacceleration, which is expected to come to fruition in the latter half of fiscal 2026.
Second, the company's progress towards securing high-end enterprise clients continues unabated, with Fortune 500 companies evaluating Okta's capabilities as they consider transitioning to comprehensive identity management platforms.
Furthermore, the analyst pointed out that Identity Governance and Administration (IGA) and Privileged Access Management (PAM) represent significant opportunities for upselling. However, it was noted that the adoption of these services is still in the early stages. Despite these potential growth areas, TD Cowen opted to maintain the Hold rating and $110 price target for Okta's stock.
In other recent news, Okta Inc . reported a 16% year-over-year revenue increase to $646 million, primarily due to a 17% rise in subscription revenue. However, Okta's third-quarter calculated remaining performance obligations (cRPO) guidance fell short of projections, leading to several financial adjustments.
Following these results, various analyst firms adjusted their outlook on Okta. Piper Sandler trimmed its price target for Okta to $85, maintaining a Neutral rating. RBC Capital Markets reduced its price target to $101, keeping an Outperform rating. Mizuho Securities revised the price target downward to $92, while maintaining a Neutral rating. Truist Securities revised the price target to $80, maintaining a Hold rating.
JPMorgan held steady with a $105 price target and a Neutral rating. These adjustments came in the wake of Okta's recent Oktane 2024 conference, where the company showcased new product innovations and discussed its growth strategy.
InvestingPro Insights
Okta's recent investor day revelations align with several key metrics and insights from InvestingPro. Despite TD Cowen's Hold rating, there are positive indicators for the company's future performance. According to InvestingPro Tips, Okta's net income is expected to grow this year, and analysts predict the company will be profitable this year. This aligns with the company's strategies aimed at revenue reacceleration mentioned in the investor day.
The company's focus on high-end enterprise clients is reflected in its impressive gross profit margins, as highlighted by InvestingPro. Okta's gross profit margin stands at a robust 75.82% for the last twelve months as of Q2 2025, indicating strong pricing power and efficiency in its core operations.
While Okta is currently not profitable over the last twelve months, its strong balance sheet position is noteworthy. An InvestingPro Tip reveals that Okta holds more cash than debt on its balance sheet, which provides financial flexibility as the company pursues growth initiatives in IGA and PAM.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Okta, providing a deeper understanding of the company's financial health and market position.
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