Okta raises price target after strong Q2 2027 results and early AI-agent deal traction

Okta reported solid Q2 2027 results with 11% revenue growth, over 28% operating and free cash flow margins, and improved net retention at 107%. The company is seeing early signs of AI-agent commercialization, though these deals are not yet materially impacting 2027 results. Okta’s valuation is higher now, with a forward P/E of 41.5x and PEG of 2.7x, so future gains depend on successful AI monetization and continued margin expansion. The analyst reiterates a Buy rating with a new price target of $182, expecting AI impact to grow from 2028 onward.