Okta Inc "Still Underappreciated into 1Q" (Buy) Boyd

Research evidence excerpt

Okta Inc "Still Underappreciated into 1Q" (Buy) Boyd

Powered by Lab Global21 MayResearch2026ab Evidence UBS YES

Okta Inc Equities

United StatesStill Underappreciated into 1Q

Software

12-month rating Buy

Summary

Into next week's earnings we remain constructive on OKTA shares, backed by decent 12m price target US$115.00

partner conversations and what still seems like an undemanding setup into 1Q,

particularly with the stock trading at 14x CY27 EV/FCF (32x ex SBC). Overall we think the

Price (20 May 2026) US$89.04

stock can work on improving fundamentals and growing credit for the still nascent

agentic identity offering. Couple of key points into the print: RIC: OKTA.O BBG: OKTA US

Upsell - commentary around new product upsell (now 30% of MRQ bookings) Trading data and key metrics

and Okta Identity Governance (OIG) in particular seems to be upticking, and while 52-wk range US$125.54-62.93

early, our checks are suggesting meaningful agentic AI opportunity. Further Market cap. US$16.5b

traction with emerging products as well as further commentary on Okta and Shares o/s 185m (COM)

Auth0 for AI agents (both now GA) can help the narrative. Free float 96%

Seat/MAU counts - Commentary around seat-based pressure in the quarter and Avg. daily volume ('000) 3,771

outlook will be important, following a string of RIFs across the software space Avg. daily value (m) US$286

(20% NET, 20% PYPL, 17% INTU, 10% META, 6% ORCL, etc). When asked last Common s/h equity (01/27E) US$6.88b

quarter, OKTA sounded comfortable with their assumptions around seat counts in P/BV (01/27E) 2.4x

the FY27 guide, but any change in tone here would hurt the narrative, despite the Net debt to EBITDA (01/27E) NM

potential to offset pressure with a larger portfolio and AI/agent SKUs.

EPS (UBS, diluted) (USD)