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Okta (OKTA) shares moved about 10% higher on March 5 as the company's market-beating Q4 overshadowed its muted guidance for the current quarter. The company posted revenue of $761 million and earnings per share (EPS) of $0.90, making D.A. Davidson analysts reiterate their “Buy” rating on OKTA with a $110 price target.
Despite post-earnings surge, Okta stock remains down more than 15% versus its year-to-date high.
Should You Invest in OKTA Stock Today?
D.A. Davidson believes Okta's artificial intelligence (AI) agent security products are beginning to see real traction in the enterprise space.
In Q4, the company’s annual recurring revenue (ARR) reached $3 billion — up 12% year-over-year — with 15% growth in its subscription backlog to $4.8 billion, signaling solid demand from enterprise customers.
In its research note, the investment firm dubbed AI a significant growth opportunity, adding it could push OKTA shares up to $110 by year-end.
While OKTA shares aren’t inexpensive to own at 48x forward earnings, they’re still worth owning given that management said large deals and channel partnerships are driving growth among major customers.
Where Options Data Suggests OKTA Shares Are Headed
According to D.A. Davidson, stable net sales and a decrease in sales representative attrition could accelerate growth in fiscal 2027.
It's also worth mentioning that the post-earnings rally on Thursday helped Okta stock breach its 20-day moving average (MA), indicating upward momentum could sustain in the near term.
According to Barchart, options data is skewed to the upside as well. Contracts expiring mid-May suggest potential upside of some 14%, which means Okta could be trading at north of $90 within the next three months.
Finally, the San Francisco-headquartered firm has a $1 billion stock buyback program in place for 2026, which makes it all the more attractive to own for long-term investors.
How Wall Street Recommends Playing Okta
Other Wall Street analysts also see OKTA shares pushing higher through the remainder of 2026.
The consensus rating on Okta Inc remains at “Moderate Buy” with the mean target of about $107, indicating potential upside of nearly 20% from here.
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