Cantor Fitzgerald Calls Okta a Contrarian Value Opportunity With 30% Upside

Okta Inc. (NASDAQ:OKTA) is among the best bundle infrastructure stocks to bargain according to hedge funds. While Cantor Fitzgerald expert Jonathan Ruykhaver has been bullish connected Okta since initiating sum astatine the extremity of March 2025, helium characterized the banal arsenic a “contrarian worth play” successful his latest update aboriginal this week. He besides reiterated his Overweight standing and $115 terms target.

As his lawsuit for Okta Inc. (NASDAQ:OKTA) arsenic a worth play, Ruykhaver highlighted the stock’s steep valuation discount, with a price-to-FY 27 income aggregate of 4.4x, compared with peers’ mean of 9.8x. He sees this discount arsenic unwarranted, fixed the company’s beardown execution, accrued merchandise breadth, and wide robust fundamentals. The expert compared the bulls and bears cases to presumption the stock. For bulls, helium argued:

Bulls constituent to Okta’s improving execution and the expanding strategical value of individuality arsenic a power plane.” He added, “With individuality present implicated successful 80-90% of breaches, investors spot Okta benefiting from the secular displacement toward autarkic individuality platforms and from NRR moving toward 110%+ implicit time.

For the carnivore case, helium argued:

Bears absorption connected competitory dynamics and the hazard that Okta’s enlargement into adjacent individuality categories whitethorn look beardown pushback from incumbents similar CyberArk, Microsoft, and SailPoint. Some presumption the ramp successful Identity Governance and Privileged Access arsenic promising but unproven astatine scale, with the products immature comparative to champion of breed.

However, the expert noted that the emergence of AI agents is making individuality a much captious portion of security, which supports his favorable presumption connected the stock. He further argued:

We spot individuality becoming progressively important to the information stack arsenic AI agents proliferate. Early engagement from much than 100 customers crossed Okta for AI Agents and Auth0 for AI Agents supports the presumption that cause information could go a meaningful caller TAM. Combined with improving execution, a strengthening merchandise portfolio, and a discounted valuation, we spot Okta arsenic owed for a re-rating arsenic the maturation communicative plays out.

Okta Inc. (NASDAQ:OKTA) is simply a cloud-based individuality and entree absorption company. It enables organizations to securely link employees, customers, and partners to applications and systems.

While we admit the imaginable of OKTA arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.