
Okta (OKTA) Stock Forecast & Price Target
Okta (OKTA) Analyst Ratings
Bulls say
Okta demonstrates a strong potential for market expansion by aiming to increase its total addressable market (TAM) beyond the capabilities of legacy vendors, which is pivotal for further consolidation within the cloud-based identity segment. The company has reported impressive profitability metrics, with operating margins and free cash flow reaching 26.7% and $238 million, respectively, which exceeded market consensus expectations. Additionally, the company's contractually recurring revenue (cRPO) experienced robust growth of 14%, surpassing prior guidance and indicating solid demand for its offerings.
Bears say
Okta faces potential downside risks to its revenue and margins, suggesting a significant discount to its peer group with an estimated EV/S multiple of 4x for CY/26E. A predicted slowdown in revenue growth by 250 basis points for CY/25-26E indicates challenges such as declining tech spending, difficulties in acquiring new customers, and reduced renewal rates. Additionally, the firm's overall growth and margin profile appear less favorable, which could result in a lower valuation multiple and impact future financial performance.
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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