RBC Capital raises Okta stock price target on strong bookings

RBC Capital adjusted its target price for Okta's stock upwards, now projecting a value of $195 from a previous level of $166. The decision came after Okta, a provider of identity and access management solutions, reported on Wednesday that their financials exceeded expectations. The company's committed remaining performance obligations grew by 14.1% year-over-year, a rate that had accelerated from 12.2% in the previous quarter and surpassed analysts' estimates of 10.8%.

The impressive growth was attributed to strong performance in new product launches, successful large deals, and enhancements to Okta's go-to-market strategy.

In addition to the price target increase, Okta has also raised its fiscal 2027 guidance across all metrics. The identity management firm's shares have seen an 85% surge over the past six months, currently trading at $167.66 with a market capitalization of $29 billion. Okta maintains a robust gross profit margin of 77%, though the stock is currently considered overvalued relative to its estimated Fair Value.

Okta's performance has been recognized by several other analysts as well. DA Davidson raised its price target to $190 citing a 14% year-over-year growth in current remaining performance obligations. Citi increased its target to $165 highlighting record bookings driven by large enterprises, newer products, and government business.

Needham raised its target to $200, noting broad-based demand across Okta's Workforce and Customer identity platforms. Cantor Fitzgerald also raised its target to $200 following a strong second-quarter performance that surpassed consensus estimates on revenue, operating margin, and free cash flow. Canaccord raised its target to $175, emphasizing Okta's strategic role in identity security platforms.