JPMorgan Upgrades Okta Inc to Overweight

Investing.com — JPMorgan has upgraded Okta Inc (NASDAQ:OKTA) to overweight from neutral. This decision is based on improved growth momentum and strong profitability guidance which create an attractive risk-reward profile. JPMorgan has maintained a $100 price target on the stock, representing about 22% upside from current levels.

> “We like the stock here as we see potential for meaningful improvement in fundamental performance and multiple expansion with execution,” stated the analyst.

The firm pointed out Okta’s conservative fiscal 2026 revenue growth forecast of 7%, which sets a low benchmark. However, the company achieved an impressive 30% year-over-year bookings growth in the latest quarter, indicating better traction in the identity and access management (IAM) markets.

Additionally, JPMorgan underscored Okta’s robust fiscal 2025 guidance, projecting operating and free cash flow margins of 22% and 24%, respectively, which exceed expectations.

The stock, trading at 17 times enterprise value-to-free cash flow on 2026 estimates, suggests potential for multiple expansion with effective execution according to the firm.

Okta’s leadership in IAM, along with the increasing strategic significance of identity security, is expected to drive growth, propelled by momentum from large enterprises, new product sales, and international expansion.