Okta Overweight Rating Boosts Target to $90 on 19% Identity Growth
Barclays upgraded Okta to overweight and raised its target to $90, citing identity security as the top enterprise spending priority with a 19% CAGR supporting a $28 billion base. The firm also highlighted Okta’s early six-figure agentic security wins and a $991 million FY28 free cash flow estimate.
1. Analyst Upgrade Details
A major investment bank upgraded Okta to overweight and raised its price target to $90, reflecting growing confidence in the company’s identity security leadership and future cash flow potential.
2. Identity Security Spending Priority
Identity security has become the leading enterprise spending category, with the market valued at $28 billion and projected to grow at a 19% CAGR, driving Okta from a low vendor ranking in 2022 to sixth place today.
3. Agentic Security Opportunity
Okta has already secured early six-figure contracts for its agentic security products, positioning the company to address emerging identity challenges posed by AI agents.
4. Growth Drivers and Cash Flow Outlook
Improved survey data, stronger intra-quarter checks, and sales-force specialization across Workforce and Auth0 have enhanced execution, underpinning a $991 million free cash flow estimate for fiscal 2028.