Bank of America lifted Okta's target to $220 from $200 after Oktane, keeping a Neutral rating. It cited AI-agent security potential but said near-term forecasts are little changed; the analyst sees the upside becoming clearer in fiscal 2028.
At Oktane, Okta positioned itself as an identity-security layer for AI agents. Free Agent SSO, included in its basic single sign-on service, may give agents unique identities and short-lived tokens; BofA said it could seed demand for paid discovery, governance and runtime-security tools. Support for third-party identity providers could let Okta sell to businesses using rival systems, including Microsoft-centric companies; BofA said Microsoft accounts for nearly 40% of the market.
BofA based its $220 target on a 12-times multiple of expected 2027 enterprise value-to-sales, up from 11 times. In a few large deals discussed at Oktane, spending on AI-agent products was about $1 to $1.50 for every roughly $4 spent on Okta's broader platform; the bank said the sample was too small to estimate how often customers might add them.
