Stifel Stands by Okta (OKTA) with $130 Target as Identity Demand Grows

Okta Inc. (NASDAQ:OKTA) is one of the 11 best debt-free stocks to invest in right now. Stifel Nicolaus analyst Adam Borg maintained his Buy rating on Okta in a June 25 note, holding the price target steady at $130. While recent sentiment around the stock has been mixed, Borg believes the company’s long-term positioning remains solid, particularly as demand for identity-focused cybersecurity solutions continues to rise.

Stifel Stands by Okta (OKTA) with $130 Target as Identity Demand Grows

A user in a cafe using a laptop to access the secure identity platform with a single sign-on.

Okta’s dual focus on Workforce Identity and Customer Identity is gaining traction, with early signs of success from newer products pointing to stronger adoption across both segments. Borg noted that recent improvements in go-to-market execution are also helping drive better results, potentially setting the stage for a revenue and RPO (Remaining Performance Obligations) reacceleration.

He believes that if this momentum continues, it could translate into meaningful improvements in operating margins and stronger free cash flow over time. From a valuation standpoint, Borg believes that while the broader market remains divided on the stock, the valuation is reasonable relative to the company’s upside potential. All these factors support his optimistic view.

Okta Inc. (NASDAQ:OKTA) offers a suite of products and services used to manage and secure identities, enabling users to access applications in the cloud or on-premises from various devices.

While we acknowledge the potential of OKTA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.