Okta’s AI Security Role Can Drive ‘Durable Growth Re-Acceleration,’ Says Citizens — Lifts Target To $225

Citizens sees identity becoming increasingly important as companies deploy AI agents, while improving demand, cross-selling and go-to-market execution could support faster growth at Okta.

• Citizens raised its Okta price target by 25% from $180, implying about 15% upside from the stock’s last close.
• Roth Capital said Okta for AI Agents is producing a 50%-60% uplift in deal values, though the opportunity remains early.
• Okta’s second-quarter revenue rose 11% year-over-year, while current remaining performance obligations increased 14%.

Okta Inc. (OKTA) could be positioned for a “durable growth re-acceleration” as artificial intelligence makes identity security more important, Citizens said in a research note, according to TheFly.

Citizens raised its price target on Okta to $225 from $180 and kept an ‘Outperform’ rating. The new target implies about 15.3% upside from the stock’s last close of $195.19.

The firm pointed to several drivers behind its more constructive view, including identity’s strategic role in AI security, Okta’s large installed customer base and its position as an independent platform that can support cross-selling, per TheFly. 

Citizens also cited improving demand, vendor consolidation, lower sales attrition and better go-to-market execution.

At the time of writing, OKTA stock was trading marginally in the red in Monday's premarket trade.

Why AI Identity Is Becoming A Bigger Opportunity

At Okta’s Oktane 2026 conference recently, the company expanded its push to secure AI agents. It said AI agents increasingly need their own identities and controls because they can connect to applications, access data and take actions on behalf of users. 

Okta for AI Agents is designed to help businesses discover agents, control what they can access, monitor their behavior and revoke access when necessary.

The theme has featured prominently across Wall Street’s latest Okta calls. According to TheFly, Roth Capital called AI-agent security a “material opportunity,” RBC Capital said the product is driving a broader platform pipeline and Wells Fargo said it gained confidence in Okta’s ability to translate AI adoption into incremental customer spending.

Not every firm is as bullish though. Citi and Mizuho kept ‘Neutral’ ratings, while TD Cowen maintained a ‘Hold’, even as all three raised their price targets following Oktane.

Research Firm	Rating	Previous Target	New Target	Upside From Last Close
Citizens	Outperform	$180	$225	15.3%
Citi	Neutral	$165	$205	5.0%
KeyBanc	Overweight	$190	$240	23.0%
Truist	Buy	$200	$235	20.4%
Roth Capital	Buy	$155	$235	20.4%
TD Cowen	Hold	$175	$200	2.5%
DA Davidson	Buy	$190	$235	20.4%
RBC Capital	Outperform	$195	$230	17.8%
Evercore ISI	Outperform	$185	$240	23.0%
Oppenheimer	Outperform	$190	$227	16.3%
Mizuho	Neutral	$165	$200	2.5%
Stifel	Buy	$180	$215	10.1%
Guggenheim	Buy	$188	$227	16.3%
Wells Fargo	Overweight	$200	$230	17.8%
BofA	Neutral	$200	$220	12.7%
Barclays	Overweight	$180	$215	10.1%
Jefferies	Buy	$200	$240	23.0%

Source: Recent analyst calls via TheFly.

Latest Results Show Growth Holding Up

Okta’s latest results support the re-acceleration thesis. Fiscal second-quarter (Q2) revenue grew 11% year over year, while subscription revenue increased 12%. Current remaining performance obligations (RPO), which represent contracted revenue expected to be recognized over the next 12 months, rose 14%.

The company raised its full-year revenue outlook to between $3.216 billion and $3.226 billion, representing growth of 10% to 11%. Okta also expects non-GAAP operating income of $830 million to $840 million and a non-GAAP operating margin of 26%.

So far this year, OKTA stock has rallied more than 133%. In comparison, the First Trust NASDAQ Cybersecurity ETF (CIBR) and Global X Cybersecurity ETF (BUG), which hold OKTA stock, have risen around 43% and 50%, respectively, over the same period.

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