Stifel raises Okta stock price target to $160 on identity security

Stifel upgraded its target price on Okta stock to $160, maintaining a Buy rating. The stock is currently valued at $143.92, showing a 58% increase over the past year. Analysts anticipate Okta to surpass guidance in its second-quarter fiscal 2027 earnings release, with a conference call scheduled for 5 p.m. Eastern Time on August 26.

The company forecasts a 2% revenue boost and 2.5% to 3.0% upside in current remaining performance obligations. The focus for the earnings call will be on Okta's AI products, the impending Permiso acquisition, and advancements in areas like core workforce identity and access management. Identity security has emerged as a top security priority, and the firm is optimistic about the reception of newer products and the improvement of go-to-market strategies.

While Okta's AI agent identities hold promising potential, analysts consider this opportunity as early stage. Other analysts, including Wells Fargo, Citizens, and KeyBanc, have also raised their price targets for Okta, citing the company's strategic positioning in AI security and access management. Cybersecurity spending, particularly driven by AI demand, is projected to outpace IT budget growth across various U.S. industries, with a notable increase expected in the Financials, Tech, and Services sectors.