Okta (NASDAQ:OKTA) shares rose more than 2% intra-day today after it received an upgrade from JPMorgan analysts, who raised the stock’s rating from Neutral to Overweight and set a price target of $100, implying a 22% upside. The upgrade followed a reassessment of Okta’s growth and profitability prospects, which now appear more favorable.
Okta reset its fiscal 2026 revenue expectations with a cautious outlook, establishing a conservative growth target of 7%. This cautious baseline made the risk/reward profile more attractive, particularly as Identity Access Management (IAM) gained strategic importance in enterprise security. Okta’s position as a leading IAM provider and a key player in cloud-based security solutions positioned it well to capitalize on this trend.
Recent performance metrics supported optimism. The company reported current remaining performance obligations (cRPO) growth of 12.7% year-over-year, alongside an estimated bookings growth acceleration to 30%. These figures signaled improving traction in Okta’s markets, boosting confidence in its ability to achieve sustained growth.
Okta also exceeded expectations with profitability guidance, forecasting an operating margin of 22% and a free cash flow (FCF) margin of 24% for the next fiscal year. At its current valuation of 17.0x EV/FCF on 2026 estimates, the stock presented an attractive opportunity for investors.
Key drivers of Okta’s future growth included strong momentum in large enterprise adoption, the ability to cross-sell new products, and further expansion into international markets. The company’s strategic investments appeared to be yielding results, setting the stage for a reacceleration in top-line growth.
With signs of improving execution and the growing importance of identity security as a core priority for businesses, Okta is well-positioned to deliver both fundamental performance improvements and potential multiple expansion.
At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com