Barclays Raises Okta (OKTA) Target, Cites Strong RPO

Okta, Inc. (NASDAQ:OKTA) is one of the best tech stocks to buy according to hedge funds. On August 27, Barclays maintained its Equal Weight rating on Okta, Inc. (NASDAQ:OKTA), while raising the price target from $100 to $112. On September 2, the stock was trading at $89.5, which means that the firm has an implied upside of 25.13% on the stock. Okta reported its Q2 Fiscal Year 2026 on August 26.

Okta’s fiscal Q2 “clean” remaining performance obligation (RPO) growth of 14% year-over-year to $4.15 billion was in line with Barclays’ upside scenario. Barclays believes that the company’s increased fiscal year revenue guidance outlook of 11% growth removes “conservatism”.

Okta generated revenue of $728 million, growing a solid, if unimpressive 13% year-over-year. The growth was driven by robust demand for its unified identity platform, especially from the public sector.

Okta’s strong RPO growth is indicative of strong growth in its subscription backlog for its identity security solutions.

Meanwhile, the company reported an EPS of $0.91 per share, representing a 7.5% earnings surprise. The company’s net margins have shown strong improvements in the last two quarters. In Fiscal Q2, the company’s margin stood at 9.2%, compared to Fiscal Q1’s 9.01% and 1.07% in Fiscal Year 2025. The improved earnings mean the stock trades at a reasonable forward P/E of 24.89x.

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Disclosure: None.