Cantor maintains Okta stock Overweight rating, $130 target
Investing.com
Published May 21, 2025 10:24AM ET
On Wednesday, Cantor Fitzgerald reaffirmed its Overweight rating and $130.00 price target for Okta, Inc (NASDAQ:OKTA), a leading provider of identity management solutions. Currently trading at $121.33 with a market capitalization of $21.2 billion, the stock has shown remarkable momentum with a 66% gain over the past six months. The firm's analyst expressed confidence in the company's performance as it approaches its first-quarter earnings for fiscal year 2026, joining 30 other analysts who have revised their earnings expectations upward for the upcoming period, according to InvestingPro data.
Cantor Fitzgerald's projections for Okta's upcoming earnings report are slightly above the company's own guidance and closely aligned with market consensus. For the first quarter of fiscal year 2026, Cantor anticipates revenue to reach $680.1 million, which is marginally higher than Okta's forecasted range of $678.0 million to $680.0 million and nearly on par with the FactSet consensus of $680.3 million. Billings are expected to come in at $559.0 million, surpassing the consensus estimate of $557.3 million. Earnings per share (EPS) are projected to be $0.77, which is consistent with the higher end of Okta's guidance of $0.76 to $0.77 and matches the consensus figure. The company maintains impressive gross profit margins of 76.32%, demonstrating strong operational efficiency.
Looking further ahead, Cantor Fitzgerald's estimates for Okta's full fiscal year 2026 are optimistic. The firm predicts annual revenue of $2869.6 million, which exceeds Okta's guidance range of $2850.0 million to $2860.0 million and is slightly above the consensus estimate of $2862.0 million. Billings for the year are expected to total $3066.1 million, again outpacing the consensus of $3061.6 million. The EPS forecast is set at $3.21, edging out both Okta's guided range of $3.15 to $3.20 and the consensus estimate of $3.20.
The analyst highlighted the Customer Identity Cloud as a key driver for Okta's near-term success, along with contributions from emerging solutions. The firm's stance remains steady, indicating a belief in the company's continued growth and potential to exceed market expectations.
Okta's financial performance is closely watched by investors, as the company plays a significant role in the identity management space, providing solutions that enable secure access for customers and employees. The upcoming earnings report will provide further insight into the company's growth trajectory and its ability to meet or surpass both internal forecasts and market expectations.
In other recent news, Okta, Inc. has been the focus of several analyst firms adjusting their price targets and providing insights into the company's financial outlook. Guggenheim raised its price target for Okta to $140, maintaining a Buy rating and expressing confidence that the company will exceed first-quarter revenue estimates and potentially provide favorable guidance for the second quarter. KeyBanc Capital Markets also lifted its price target to $155, emphasizing Okta's strong positioning in the identity management sector and its potential to capitalize on industry trends. Similarly, DA Davidson increased its price target to $145, noting that Okta's fiscal year 2026 guidance was set conservatively, suggesting room for the company to surpass expectations.
Get The News You Want
BMO Capital Markets adjusted its price target to $135, retaining a Market Perform rating, and hinted at the possibility of Okta exceeding revenue expectations for the April quarter. RBC Capital Markets echoed this sentiment by raising its price target, citing a favorable risk/reward profile and long-term trends in the identity market. Despite these positive outlooks, analysts have also highlighted challenges such as competition from Microsoft (NASDAQ:MSFT) and the execution of Okta's go-to-market strategy. These recent developments in analyst ratings and price targets reflect a general optimism about Okta's future performance, although some caution remains due to external market factors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.