BMO Upgrades Okta to Outperform on Strong Identity Management Outlook

Core Viewpoint - BMO Capital upgraded Okta, Inc. from Market Perform to Outperform, raising its price target to $97 due to increased confidence in the durability of Okta's revenue growth [1] Group 1: Revenue Growth and Market Position - The primary reason for the upgrade is the belief that identity management will be crucial for the adoption of AI agents, positioning Okta to benefit from this emerging market [1] - Okta Identity Governance (OIG) is highlighted as having significant potential for expansion, with expectations of maintaining flat to slightly higher subscription revenue growth in fiscal 2027 compared to fiscal 2026 [2] Group 2: Future Revenue Contributions - AI agent-related revenue contributions are anticipated to remain minimal in fiscal 2027 but are expected to become a more significant driver starting in fiscal 2028 [2]