TD Cowen Maintains Hold Rating on Okta Stock, Keeps PT at $115

Okta, Inc. (NASDAQ:OKTA) is one of the 10 Best AI Software Stocks to Buy Now. On August 18, TD Cowen maintained a Hold rating on Okta, Inc. (NASDAQ:OKTA), with a price target of $115.

Shaul Eyal from TD Cowen reiterated the rating on OKTA ahead of the company’s Q2 FY2026 release scheduled on August 26. The company’s recent performance in the Identity & Access Management (IAM) sector remains solid, with strong trends reported in the industry. The analyst retains a Hold position on the stock despite the company’s positive start to FY2026 with better-than-expected Q1 results. However, Okta’s guidance for Q2 shows revenue and growth projections slightly below expectations, according to Eyal. This is mainly due to the macroeconomic uncertainties.

TD Cowen Maintains Hold Rating on Okta Stock, Keeps PT at $115

A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.

The company expects total revenue of around $710 million to $712 million, indicating growth of almost 10% year-over-year. Whereas, Wall Street expects Okta to achieve revenue of $711.84 million, which is slightly lower than the top end of the guidance. Eyal pointed out that while Okta’s new products have shown promising traction, the company’s outlook remains cautious. The exposure to federal spending and broader economic uncertainty could lead to potential deal delays.

Okta, Inc. (NASDAQ:OKTA) is an independent identity partner. The company serves customers with AI-integrated solutions to securely connect the right people to the right technologies.

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.