BMO Capital upgraded Okta, Inc. (NASDAQ: OKTA) from Market Perform to Outperform and raised its price target to $97.
The firm cited increased confidence in the durability of Okta’s revenue growth as the primary reason for the upgrade. According to the analyst, identity management will play a critical role in enabling the adoption of AI agents, positioning Okta to benefit from the growth of this emerging market.
BMO also highlighted that Okta Identity Governance (OIG) offers a long runway for expansion. Based on its analysis, the firm believes Okta has a reasonable chance of maintaining flat to slightly higher subscription revenue growth in fiscal 2027 compared with fiscal 2026.
The analyst noted that AI agent-related revenue contributions are expected to remain minimal in fiscal 2027 but could become a more meaningful driver beginning in fiscal 2028.
