Okta Stock Pops 4% as Wall Street Goes All In on AI Agents

TLDR

• Morgan Stanley raised its Okta price target to $245 from $200, keeping an Overweight rating.
• Scotiabank lifted its target to $245 from $190, citing strong AI agent interest at Oktane 2026.
• Okta stock traded around $202, up 4% on the day.
• Truist, Citizens, BMO and DA Davidson also raised their price targets on Okta this month.
• Okta stock is up 166% over the past six months.

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Okta (OKTA) stock traded at $202.18 on Tuesday, up 4% on the day. The move came after Morgan Stanley raised its price target on the identity security company.

Okta, Inc., OKTA

Morgan Stanley analyst Meta Marshall lifted her price target to $245 from $200. She kept her Overweight rating on the stock.

The upgrade followed Okta’s investor event earlier this month. Marshall said investors are looking beyond established names like Palo Alto Networks and CrowdStrike.

She wrote that Okta is increasingly seen as a winner from what she calls Agentic Identity exposure. Marshall expects that growth to build gradually rather than all at once.

Scotiabank made a similar move on Monday. The firm raised its target to $245 from $190 and kept its Sector Outperform rating.

What Analysts Heard at Oktane 2026

Scotiabank’s call came after its analyst spoke with more than 10 customers over three days at the Oktane 2026 conference. The firm also met with Okta’s management team.

Interest in Okta’s AI Agent products was strong across those conversations. Still, only 10% of customers surveyed had actually signed contracts for the product so far.

Sales cycles for Okta typically run three to nine months. Scotiabank expects AI agents to add more meaningfully to growth starting in the first quarter of fiscal 2028.

The analyst noted that identity modernization tied to Mythos preparedness was not a major topic at the conference. That kind of spending has shown up elsewhere, including in financial services and at a $20 billion retailer.

Scotiabank first upgraded Okta in July. That call was based on the company’s position to capture identity modernization and AI agent security spending.

Valuation and Recent Performance

Okta stock trades at 36 times calendar 2027 EBITDA, according to Scotiabank. InvestingPro data puts the company’s price to earnings ratio at 119.68.

The company holds a gross profit margin of 78.13%. Okta stock has surged 166% over the past six months.

InvestingPro analysis suggests the stock may be overvalued compared to its fair value estimate. Scotiabank still views the risk reward profile as skewing to the upside.

Okta’s market capitalization stood at $34.12 billion as of Monday’s close. Scotiabank described the company as an accelerating AI winner.

Other firms have also raised their targets this month. Truist Securities reiterated its Buy rating and raised its target to $235.

Citizens increased its target to $225 and kept its Market Outperform rating. The firm pointed to rising demand for AI security tools.

BMO Capital raised its target to $230, citing Okta’s expanding footprint in identity solutions. DA Davidson lifted its target to $235 after positive customer and channel feedback on Okta’s AI Agent push.