Okta is poised to reap significant rewards from the rise of generative artificial intelligence, according to experts at Loop Capital. The firm, known for its robust identity security solutions, is initiating coverage with a buy rating and a target price of $140—a potential 24% jump from its current levels.
Analyst Yun Kim explains that the identity security landscape is shifting dramatically. As companies deploy generative AI, the need to secure not just employee and customer identities but also non-human entities like AI agents and API calls becomes more urgent. If you’ve ever wrestled with protecting multiple access points, you can appreciate how critical a comprehensive security approach is today.
Kim points to Okta’s strategic assets, including Auth0 and a close partnership with OpenAI, as reasons the company is well-positioned to lead this charge. Okta’s stock has already enjoyed a strong run—up more than 43% this year—and outperformed the S&P 500, which saw gains of over 52% in six months and nearly 23% in the past month.
Looking ahead, Kim anticipates that Okta’s momentum will build even more in the latter half of 2025. He wryly notes that the market might only be a high-profile, AI-related security breach away from sparking a surge in demand. With a backdrop of cautious optimism, Okta is being hailed as the ‘Palo Alto of identity security’ for its reliable approach to safeguarding digital identities.
Wall Street seems to agree. Out of 44 analysts covering the company, 24 are recommending a buy or strong buy, while another 17 suggest holding. For anyone keeping an eye on the tech landscape, Okta’s performance might just be the indicator of broader trends in secure, AI-enhanced operations.
