In a report released today, Tomer Zilberman from Bank of America Securities maintained a Sell rating on Okta, with a price target of $75.00.
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Tomer Zilberman has given his Sell rating due to a combination of factors impacting Okta’s stock. Despite the company’s strong vision and efforts in platformization and agentic AI security capabilities, these initiatives are still in the early stages and are not expected to contribute significantly to revenue in the near term. The competitive landscape is intensifying with the entry of platform vendors like Palo Alto Networks and CrowdStrike, which could exert pressure on Okta and the broader Identity market.
Furthermore, Okta’s stock is slightly underperforming the broader market, and there are limited catalysts anticipated in the near or far term to drive further upside. While Okta’s Identity Security Fabric consolidates various identity and access management capabilities, the agentic AI opportunity remains nascent, with production deployments expected to pick up only later in 2026/2027. The potential shift from cooperation to competition with companies like CrowdStrike and Palo Alto Networks further complicates the outlook for Okta, reinforcing the Sell rating.