Analysts Cut Okta Targets to $100 and $110 Despite Strong RPO
Cantor Fitzgerald cut Okta's price target from $115 to $100 and DA Davidson reduced its target from $140 to $110, both keeping overweight or buy ratings. Cantor's Q4 checks showed 21% saw demand ahead versus 39% prior, and DA Davidson said remaining performance obligations topped $2.5 billion, above its $2.445–$2.45 billion guidance.
1. Analyst Price Target Cuts
Cantor Fitzgerald lowered its price target for Okta from $115 to $100 and maintained an overweight rating, while DA Davidson cut its target from $140 to $110 and kept a buy rating, reflecting cautious optimism despite market headwinds.
2. Q4 Demand Survey Results
Cantor Fitzgerald’s fourth-quarter checks revealed that 21% of respondents saw demand ahead of expectations, down from 39% in the prior quarter, with partners describing performance as steady and driven by renewals and early-stage growth.
3. Remaining Performance Obligations Exceed Guidance
DA Davidson reported that Okta’s current remaining performance obligations surpassed $2.5 billion, above the company’s guidance range of $2.445 billion to $2.45 billion, indicating a solid backlog of future revenue.
4. Outlook for Growth Reacceleration
Both firms cited improvements in sales execution and capacity expansion as key drivers, projecting that Okta’s growth could reaccelerate by the second half of fiscal 2027 as net sales performance stabilizes and productivity gains continue.