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Research Alert: CFRA Maintains Buy Rating On Shares Of Okta Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our target price from $91 to $143 on a forward P/E of 37x our FY 27 (Jan.) EPS projection of $3.86, above its one-year average. We lift our FY 27 EPS estimate to $3.86 from $3.81 and our FY 28 EPS view to $4.26 from $4.22. OKTA reported solid Q1 FY 27 results, with revenue of $767M growing 12% Y/Y, driven by strength in large enterprises and newer product contributions. Large customers (>$100K ACV) now represent 85% of ACV, up from 80% previously, while customers with >$1M ACV grew meaningfully, reflecting successful focus on the enterprise segment. Management highlighted strong interest for Agentic Security solutions as organizations ramp Agentic use. While we are still early in monetization, we note a robust pipeline for Okta for AI agents and Auth0 for AI agents, and we expect AI-driven solutions to lift deal sizes and acceleration transactions ahead. Non-GAAP operating margin of 25% declined 200 bps Y/Y as the company expands growth investments.

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