Jefferies Lowers Okta (OKTA) PT to $105 Despite Stable Cybersecurity Spending Outlook

Okta Inc. (NASDAQ:OKTA) is one of the best growth stocks to buy and hold for 3 years. On July 24, Jefferies analyst Joseph Gallo lowered the firm’s price target on Okta to $105 from $130, while maintaining a Hold rating on the shares. The adjustment came despite Jefferies’ belief that cybersecurity spending will constitute a steady percentage of software budgets in the coming years.

In FQ1 2026, the company reported total revenue of $688 million, which was an increase of 12% year-over-year, with subscription revenue also growing 12% to $673 million. Net cash provided by operations was $241 million, and free cash flow was $238 million. As of April 30, cash, cash equivalents, and short-term investments totaled $2.725 billion.

The company added 70 customers with $100,000+ in Annual Contract Value/ACV, bringing the total to 4,870, which was over 80% of the total ACV. Customers with over $1 million in ACV grew 20% to 480. Okta is actively innovating with new products such as Identity Security Posture Management and Okta Privileged Access, designed to address evolving cyber threats. The company is also well-positioned in the US public sector.

Okta Inc. (NASDAQ:OKTA) is a global identity partner. It offers Okta’s suite of products and services used to manage and secure identities, such as Single Sign-On, Adaptive Multi-Factor Authentication, API Access Management, Access Gateway, Workforce Identity Cloud, and Okta Device Access.

While we acknowledge the potential of OKTA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.