Investing.com — JPMorgan upgraded Okta Inc (NASDAQ:) to ‘overweight’ from ‘neutral’, based on improved growth momentum and strong profitability expectations as drivers for an attractive risk-reward profile. JPMorgan maintained a $100 price target on the stock, up about 22% from current levels.
“We like the stock here because we see potential for meaningful improvement in fundamental performance and multiple expansion with execution,” one analyst wrote.
The company noted that Okta’s conservative 2026 revenue growth forecast of 7% sets the bar low, while its acceleration of 30% year-over-year bookings growth in the last quarter signals improving traction in the identity and access management markets (IAM).
JPMorgan also highlighted Okta’s robust guidance for fiscal 2025, with expected operating and free cash flow margins of 22% and 24%, respectively, exceeding expectations.
The stock’s valuation, which is estimated to trade at 17 times the company’s value to free cash flow by 2026, offers room for multiple expansion with strong execution, the company said.
Okta’s leadership in IAM and the growing strategic importance of identity security are expected to drive growth, supported by enterprise momentum, new product sales and international expansion.
