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CEO Todd McKinnon introduced new tools this week designed to manage and secure AI agents, which are automated software programs that can perform tasks on behalf of users. The company also helped form the Blueprint Alliance, a group focused on setting security standards for how businesses use artificial intelligence.
This is a logical move for the business as it tries to stay relevant in an AI-driven market. By positioning itself as the secure gatekeeper for AI agents, the company is attempting to expand its reach beyond human logins and into the automated systems that are becoming a larger part of corporate technology.
Source: CNBC Television
Stephens raised its target for the stock from $190 to $240 on Friday. This move puts their target well above the current average of $200 across all analysts who follow the company. While a target raise is a sign of confidence in the company's direction, it is a routine adjustment and does not change the firm's overall rating on the stock.
Source: Stephens
On September 14, Emilie Choi resigned from the board of directors. The company stated her departure was not due to any disagreement over operations or policies.
On September 18, Helen Riley was appointed as an independent director to fill the vacancy. Riley will serve on the audit committee, the group responsible for overseeing the company's financial reporting and internal controls. While director changes are routine, adding fresh financial expertise is a standard move as the company focuses more on cash flow and profitability.
Source: 8-K filing
Bernstein lowered its rating on Okta to market perform, which is essentially a neutral stance. The firm set a price target of $174, which is lower than where the stock is currently trading. This move suggests that after a recent run-up in the stock price, the firm sees less room for the stock to keep climbing in the near term.
While Bernstein is stepping back, BTIG moved the other way this week. That firm kept its buy rating and raised its target to $219, arguing the company still has room to grow. The average target across all analysts now sits at about $178.
Source: Bernstein
BofA Securities raised its rating on the stock to neutral. This move suggests analysts see less risk in the business than they did previously, even as the company works to balance its growth with higher profit margins.
The average target price across all analysts who follow the company now sits at about $176. This upgrade is a notable shift in sentiment from a major firm, though a neutral rating still implies they are waiting for more evidence of steady growth before becoming fully optimistic.
Management consistently sets a beatable bar and clears it, with eight straight quarters of steady profit beats that show they have a tight grip on their costs.
| Expectation | |
|---|---|
| EPS | $0.93 |
| Revenue | $816M |