BMO says this cloud stock is an early winner of agentic artificial intelligence boom

Source Domain: www.cnbc.com

BMO Capital Markets upgraded Okta, a cloud identity and access management provider, to “outperform” from “market perform,” indicating increasing confidence in its revenue growth potential.
Analyst Keith Bachman raised Okta’s price target to $97 from $83, signaling an upside potential of 22%, driven by the anticipated rising demand for identity security in an AI-rich future.
Despite declining shares of Okta by 8% this year and 28% over the last 12 months, the stock surged 11% following its fourth-quarter earnings report which exceeded Wall Street estimates.
Bachman believes that Okta, with its established market position and improved governance capabilities, will benefit from the growing adoption of artificial intelligence agents, which necessitate robust identity management for security.
He highlighted that identity and access management (IAM) and identity security are crucial in promoting the adoption of AI agents and that Okta’s comprehensive solutions and strong market trust position it well to capitalize on this trend.
Bachman applauded Okta’s latest solutions, “Okta for AI Agents” and “Auth0 for AI agents,” noting early positive feedback and expecting further positive reception as agent use increases.

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