BofA double upgrades Okta to Buy ahead of year of ‘beat & raise’

As previously reported, BofA double upgraded Okta to Buy from Underperform with a price target of $135, up from $64, citing strong Q4 results and the potential the firm sees for outperformance throughout FY25. Prior concerns around new customer growth, saturation among the existing customer base, and ongoing execution issues had previously kept the firm at Underperform, but the analyst believes these headwinds have lessened and views FY25 guidance as “overly conservative,” which could drive upwards estimate revisions throughout the year and make FY25 likely to be a year of “beat & raise,” the analyst tells investors.