Analyst Predicts Growth Recovery For Okta (OKTA) Stock

Okta, Inc. (NASDAQ:OKTA) is one of the 10 Stocks That Will Collapse Because of AI. On April 15, Raymond James analyst Adam Tindle upgraded Okta, Inc. (NASDAQ:OKTA) from Market Perform to Outperform and set a price target of $85. The firm’s price target implies a further 17% upside from the current levels. The firm noted that the stock has fallen sharply, from around $200 in fiscal 2023 to $72 today. This drop has been driven by a slowdown in net revenue retention, which decreased from over 120% to 106%, mainly due ot smaller renewals from customers that have overprovisioned during the COVID period. However, the analyst expects this pressure to ease over time, as the company’s average contract duration is just under three years.

Okta, Inc. (NASDAQ:OKTA) is one of the 10 Stocks That Will Collapse Because of AI.

Raymond James also said its analysis of key metrics points to a favorable “forward waterfall,” which could support a recovery in growth. Moreover, the firm sees AI as a potential long-term driver, with the ability to expand OKTA’s total addressable market as AI agents become more widely used in the workforce.

On the same day, KeyBanc analyst Eric Heath cut the firm’s price target on Okta, Inc. (NASDAQ:OKTA) from $100 to $95 while maintaining an Overweight rating. The firm said its first-quarter channel checks were mixed due to AI disruptions, geopolitical uncertainty, and higher costs. It also pointed to a weaker 2026 budget outlook and softer U.S. demand. The firm noted that nearly 20% of partners are shifting spending toward AI-native solutions, adding pressure on future software demand. The mixed views from the analysts highlight a divided outlook on Okta, Inc. (NASDAQ:OKTA).

Okta, Inc. (NASDAQ:OKTA) is an identity partner operating in the United States and around the world. The company offers Single Sign-on,  Adaptive MFA, API Access Management, Access Gateway, Okta Device Access, and Universal Directory. It was founded in 2009 and is based in San Francisco, California.

While we acknowledge the risk and potential of OKTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKTA and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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