
Okta (OKTA) Stock Forecast & Price Target
Okta (OKTA) Analyst Ratings
Bulls say
Okta demonstrates a positive growth trajectory with the potential to expand its Total Addressable Market (TAM) significantly beyond the reach of legacy vendors, which positions the company favorably within the cloud-based identity management sector. Financial performance metrics highlight a robust operating margin and free cash flow of 26.7% and $238 million, respectively, exceeding consensus expectations. Additionally, the company's contractually Remaining Performance Obligations (cRPO) grew by 14%, surpassing guidance of 12%, which indicates strong demand and revenue growth prospects moving forward.
Bears say
Okta faces significant headwinds due to projected slower revenue growth, potentially declining by 250 basis points in CY/25-26E compared to current estimates, which could be exacerbated by a fall-off in technology spending and challenges in customer expansion and renewal rates. Consequently, this diminished growth and margin profile may lead to a lower valuation multiple, positioning the stock at a possible 4x CY/26E EV/S, indicating a substantial discount relative to peers. Additionally, management's insights on broad-based macroeconomic slowdowns and immediate impacts from tariff-related verticals suggest a challenging operating environment that could hinder Okta's financial performance moving forward.
This aggregate rating is based on analysts' research of Okta and is not a guaranteed prediction by Public.com or investment advice.
Okta (OKTA) Analyst Forecast & Price Prediction
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