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BMO Capital Markets upgraded Okta $OKTA ( ▲ 1.34% ) to Outperform from Market Perform on Friday. Analyst Keith Bachman also raised his price target to $97 from $83.
Bachman cited increased confidence in revenue growth durability. He sees Okta generating flat to modestly higher subscription revenue growth year-over-year in fiscal 2027.
Identity Is the New Gatekeeper
The bigger story is AI agents.
As enterprises deploy more of them, identity and access management becomes a critical chokepoint — and Okta sits squarely in the middle of it.
Bachman argued that identity security will be a key enabler of agent adoption over the next several years.
Okta has already launched two products targeting the space: Okta for AI Agents and Auth0 for AI agents. Early feedback for both has been positive.
He added that smaller, next-generation identity vendors lack Okta's scale, integrations, and enterprise trust — a structural advantage as the market grows.
Still Waiting at the Door
Of the 46 analysts covering Okta, 30 rate it a Buy or Strong Buy, while 14 give it a Hold. BMO falls firmly in the bullish camp.
Bachman's argument: identity is what gets enterprises through the AI door. Okta just has to make sure it's holding the keys.
