BMO Capital Markets slightly lowered its price target on Okta, Inc. (NASDAQ:OKTA) to $132 from $135 on May 29, maintaining a Market Perform rating on the cybersecurity firm. The adjustment reflects tempered expectations following what BMO described as a solid, but not exceptional, setup for the April quarter.
In a note to investors, analyst Keith Bachman said Okta, Inc. likely delivered a beat on demand-driven metrics in Q1, with revenue tracking in line with prior guidance. However, he noted that BMO had expected “more upside” heading into the report, limiting enthusiasm around the near-term outlook.
A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.
Still, BMO sees potential beyond the current fiscal year. Bachman pointed to the company’s remaining performance obligations (cRPO) build as an indicator that fiscal 2026 guidance might be overly conservative. He also highlighted Okta’s longer-term opportunity in securing non-human identities, such as APIs and service accounts—an area of growing demand in identity management. The lowered price target comes amid broader tech sector recalibrations, where even modest deviations from high expectations can drive valuation shifts.
Okta’s positioning in the identity security space remains strong, but investors may be seeking more clarity on margin expansion and sustained revenue acceleration.
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