Cantor Fitzgerald Highlights Okta, Inc (OKTA) Stock as a Contrarian Play

Cantor Fitzgerald analyst Jonathan Ruykhaver reiterated an Overweight rating and $115.00 price target on Okta, Inc (NASDAQ: OKTA).

The analyst commented, "This week, we highlight Okta (OKTA, OW) as a contrarian value play. The stock trades at just 4.4x FY27 sales (versus peers at 9.8x), despite strengthening fundamentals, improving execution, and expanding product breadth… Bulls point to Okta’s improving execution and the increasing strategic importance of identity as a control plane. F3Q26 results were solid, with revenue up 12% y/y and cRPO up 13% y/y, supported by improved sales productivity and rising adoption of new product areas. New products represented 15–20% of bookings, led by Identity Governance, Privileged Access, and Identity Threat Protection. Large enterprise traction continues to build, customers >$1M ACV grew 17% y/y, while early enthusiasm around Okta for AI Agents and Auth0 for AI Agents suggests Okta is well-positioned to lead in securing agentic workflows. With identity now implicated in 80-90% of breaches, investors see Okta benefiting from the secular shift toward independent identity platforms and from NRR moving toward 110%+ over time… Bears focus on competitive dynamics and the risk that Okta’s expansion into adjacent identity categories may face strong pushback from incumbents like CyberArk, Microsoft, and SailPoint. Some view the ramp in Identity Governance and Privileged Access as promising but unproven at scale, with the products immature relative to best of breed. Additionally, while Okta for AI Agents presents a meaningful TAM opportunity, bears contend that PAM and IGA vendors are better positioned to secure agentic workflows, given their deeper governance and privilege models… We see identity becoming increasingly crucial to the security stack as AI agents proliferate. Early engagement from more than 100 customers across Okta for AI Agents and Auth0 for AI Agents supports the view that agent security could become a meaningful new TAM. Combined with improving execution, a strengthening product portfolio, and a discounted valuation, we see Okta as due for a re-rating as the growth story plays out."

For an analyst ratings summary and ratings history on Okta, Inc click here. For more ratings news on Okta, Inc click here.

Shares of Okta, Inc closed at $83.64 yesterday.

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