OKTA Stock Records Biggest Ever Single-Day Gains, Blasts Past Wall Street’s Latest Price Targets After Q1 Beat

• Morgan Stanley raised Okta’s price target to $115 from $101 and kept an ‘Overweight’ rating.
• Mizuho said Q1 results show that Okta remains a leader in the ‘critically important’ identity management market.
• For Q2, the company expects total revenue of $790 million to $794 million, reflecting about 9% growth from last year.

Shares of Okta Inc. (OKTA) registered their best single-day gains on Friday, soaring nearly 28% after the identity security company impressed investors with a stronger-than-expected first-quarter earnings report that pushed the stock beyond Wall Street’s latest price targets.

At the time of writing, Okta shares was trading near $121, surging past most of the revised Wall Street targets clustered at $120 or lower, according to The Fly.

Mizuho Highlights Okta’s Leadership Position  

Okta’s first-quarter (Q1) revenue came in at $765 million, above Street estimates of roughly $751.8 million, according to Fiscal.ai. The firm reported earnings of $0.91 per share, which beat consensus estimates of $0.85.

For the second quarter (Q2), the company expects total revenue of $790 million to $794 million, reflecting about 9% growth from last year, along with earnings per share of $0.95 to $0.97.

Morgan Stanley noted that the company’s Q1 results came in ahead of expectations across key metrics, adding that the acceleration and traction in new products are “an encouraging sign.” The firm raised Okta’s price target to $115 from $101 and kept an ‘Overweight’ rating.

Meanwhile, Mizuho raised its price target to $110 from $100 while maintaining an ‘Outperform’ rating, stating that Q1 results demonstrate Okta remains a leader in the “critically important” identity management market, with growing benefits expected from its newer products.

However, Scotiabank indicated it intends to remain on the sidelines, noting it is still too early to conclude that a “new leaf has been turned” in sustaining top-line re-acceleration in fiscal 2027.

Retail sentiment on Stocktwits remained ‘extremely bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

OKTA Bulls Say Stock Is Undervalued

Retail sentiment for OKTA on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, amid ‘extremely high’ message volumes. 

One Stocktwits user believes the stock has been “undervalued.”

The stock has gained more than 38% so far this year.

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