BMO Raises Outperform Target to $97, RBC Maintains $108 on AI Growth
Analysts at BMO Capital upgraded Okta to Outperform and raised its price target to $97, citing revenue growth driven by identity governance’s potential in AI agent adoption. RBC Capital maintained an Outperform rating with a $108 target after strong Q4 execution and accelerating hiring suggested further revenue and CRPO upside.
1. BMO Capital Upgrade
BMO Capital upgraded Okta to Outperform and raised its price target to $97, reflecting confidence in revenue durability and the critical role of identity governance in AI agent deployment. The firm anticipates flat to slightly higher subscription revenue growth in fiscal 2027, with AI agent-related contributions remaining minimal until becoming meaningful in fiscal 2028.
2. RBC Capital Maintains Outlook
RBC Capital retained its Outperform rating with a $108 target after Okta delivered strong Q4 execution, highlighting accelerated hiring as a signal of potential revenue and current remaining performance obligation (CRPO) upside. The firm also noted encouraging early traction in the AI agent opportunity, which could drive growth throughout fiscal 2027.
3. Agentic AI Growth Prospects
Okta’s agentic AI initiatives have driven larger multi-year contract wins and sustained a stable net retention rate, underpinning long-term expansion prospects. Its Rule of 42% outperformance in fiscal 2026 and a forward EV/Sales multiple of 3.72x indicate the company remains attractively valued against peers with similar growth metrics.