D.A. Davidson Upholds Okta Buy Rating, Cites 12% cRPO Growth
D.A. Davidson reiterated Buy on Okta with a $110 target after Q4 revenue rose 11% to $761M and cRPO grew 12% to $2.513B, above 9% consensus. It forecasts fiscal 2027 subscription revenue growth of about 10% versus 9% consensus and anticipates cRPO reacceleration in H2 given sales productivity gains.
1. Q4 Financial Results
Okta reported Q4 revenue of $761M, up 11% year over year, including subscription revenue of $747M. RPO reached $4.827B (+15%) and cRPO climbed 12% to $2.513B, while operating cash flow totaled $258M and free cash flow was $252M for the quarter.
2. Fiscal 2027 Guidance
Management set fiscal 2027 subscription revenue growth guidance of about 10% year over year, exceeding the 9% consensus estimate. The outlook suggests more stable subscription growth throughout the year and anticipates additional momentum from product mix and larger deal sizes.
3. Analyst Buy Rating and Target
D.A. Davidson maintained a Buy rating and assigned a $110 price target, viewing management’s guidance as conservative. The firm highlighted improved sales productivity, expanded sales capacity and early AI agent contributions as drivers for potential cRPO reacceleration in the second half of fiscal 2027.