Loop Capital starts Okta with Buy into accelerating growth

Loop Capital initiated coverage of Okta (OKTA) with a Buy rating and $140 price target The identity security market is on the verge of a mass market adoption phase driven by the need to secure generative artificial intelligence deployments, which require a modernized, holistic approach to securing the identities of workforce, customers, and non-human entities and managing their access to data and services, the analyst tells investors in a research note. The firm believes Okta has the most strategic asset in Auth0 and the most strategic customer relationship with OpenAI “in this emerging AI-driven demand wave.” As such, the company is perhaps the best positioned vendor in the identity security market, contends Loop. The firm expects Okta to show accelerating growth starting as early as the second half of this year despite the current macro uncertainty.