10 AI Stocks Investors Should Keep on Their Radar

8. Okta, Inc. (NASDAQ:OKTA)

Number of Hedge Fund Holders: 57

Okta, Inc. (NASDAQ:OKTA) is one of the 10 AI Stocks Investors Should Keep on Their Radar. On August 26, Canaccord Genuity analyst Kingsley Crane upgraded the stock from Hold to Buy with a price target of $120.00 (from $115.00). While Okta has had “less-than-stellar” performance in recent quarters, the upgrade is a reflection of the stock “beginning to turn the corner.”

The firm now views OKTA as a “unique identity security platform asset in public markets” having the potential to attract acquisition interest from big tech firms or investors following the Palo Alto Networks/Cyber Arks deal.

“As we’ve calibrated a number of factors over the past few quarters, including 1) an ever-evolving guidance philosophy, 2) ongoing sales force specialization efforts, and 3) re-prioritization of identity security within IT budgets, we’re settling into the idea that OKTA’s business performance has been less-than-stellar, but we now see the business beginning to turn the corner and expect there could be incremental benefit within the PAM, and even IGA, product pillars with competitive M&A creating disruptions. To that end, we view OKTA as a unique identity security platform asset in public markets with real take-out potential from strategic buyers or private market financial sponsors in the wake of the PANW/CYBR transaction.”

Given the current valuation, the stock appears to be near the floor with upside potential backed by continued enterprise spending on identity security and opportunities tied to artificial intelligence.

“We see favorable risk/reward at these levels with valuation at 16.5x EV/CY26E FCF near a floor with ongoing identity security prioritization within enterprises alongside a budding agentic AI story creating top-line growth green shoots. We are upgrading to Buy and increasing our PT to $120 (from $115), reflecting 6x EV/CY26E Sales and 22x EV/CY26E FCF.”

Okta, Inc. (NASDAQ:OKTA) is a workplace cybersecurity company.