11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

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5. Okta, Inc. (NASDAQ:OKTA)

Average Analyst Upside: 21.61%

Number of Hedge Fund Holders: 47

Okta Inc. (NASDAQ:OKTA), a leading identity and access management (IAM) company, offers cloud software designed to help organizations manage and secure user authentication across applications. Its solutions also enable developers to integrate identity controls into apps, websites, web services, and devices. One of its flagship offerings is Identity Threat Protection, powered by Okta AI.

For the third fiscal quarter, Okta Inc. (NASDAQ:OKTA) reported earnings per share of $0.67, surpassing market expectations by $0.09. The company generated $665 million in revenue, marking an increase of nearly 14% year-over-year and exceeding analyst forecasts by over $15.3 million.

In response to these results, Piper Sandler maintained its Neutral rating on Okta Inc. (NASDAQ:OKTA), a $14.5 billion market cap identity management company known for its impressive 75.8% gross margins. The firm raised its price target to $90 from $85 and forecasted about 7% revenue growth for fiscal year 2026. The analyst characterized this forecast as conservative, reflecting ongoing uncertainty regarding the timing of a potential growth inflection for Okta.

Meridian Growth Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q3 2024 investor letter:

“Okta, Inc. (NASDAQ:OKTA) is the largest independent identity software company, serving a large and diverse clientele, including enterprises, universities, and government agencies. Its solutions provide advanced security authentication, and integration with over 7,000 software vendors enhances its competitive advantage. Despite beating earnings expectations and raising guidance, the stock underperformed due to concerns about a slightly lower-than-expected forward growth metric, which led to worries about fiscal year 2026 growth prospects. Historically, management has been conservative in its guidance and has consistently over-delivered, and we believe the market overreacted as fundamentals remain strong. As a result, we added to our position during the quarter.”

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