Okta Shares Could Benefit from AI Boom
Loop Capital has initiated coverage on Okta with a buy rating and a $140 price target, citing the company’s strategic position in the identity security market as AI adoption grows. The firm believes Okta is well-positioned to benefit from the increasing need to secure AI deployments, particularly with its Auth0 asset and relationship with OpenAI.
The identity security market is on the verge of mass adoption driven by the need to secure AI deployments, according to Loop Capital analyst Yun Kim. “With Okta having the most strategic asset (Auth0) and the most strategic customer relationship (OpenAI) in this emerging AI-driven demand wave, we believe Okta is perhaps the best-positioned vendor in the identity security market,” Kim wrote in a note.
Okta’s stock has already surged more than 43% in 2025 and 52% over the past six months, outperforming the S&P 500. Kim expects the company to see accelerated growth in the second half of 2025, driven by the increasing need to secure AI deployments, particularly non-human identities and API calls.
The analyst’s bullish stance is supported by most of Wall Street, with 24 out of 44 analysts rating Okta a buy or strong buy. Kim believes Okta has become the “one-stop shop” for identity security needs, similar to Palo Alto in its respective market.
While macroeconomic uncertainty remains, Kim expects Okta’s growth to accelerate as the market increasingly focuses on securing AI deployments. “The market is one high-profile, AI-related security breach away from a sudden surge in demand for securing AI deployments,” Kim noted.
