As artificial intelligence threatens the online identity security framework, Macquarie thinks cybersecurity company Okta could use the moment as an opportunity to reaccelerate its business. The bank is initiating coverage on the identity and access management company with an outperform rating and a $100 price target, implying a more than 27% gain from Wednesday’s close. In a Wednesday note, analyst Steve Koenig wrote that Okta has several ways to boost revenue growth in the medium term, including longer contract lengths, shifting its product launch strategy and growing its presence in the Amazon Web Services marketplace. However, it’s the opportunity with AI that he detailed the most. “Adoption of agentic AI could represent a significant new opportunity in the identity space, as enterprises need to protect non-human identities,” Koenig said. “A major focus of OKTA’s current roadmap is securing the AI-driven enterprise through an identity security fabric.” OKTA 6M mountain OKTA six-month chart. That means securing all identity types: human, machine and AI agent. Okta’s product for AI agents was launched in January, and the company is working with to encourage its use, Koenig said. The product isn’t included in Okta’s full-year guidance, so its initial impact is likely to be small, he said. However, in the longer term, he expects there is a lot of potential. “If we assume that enterprises will allocate a conservative 1% of their spend on agentic AI to protect its new tools, we could assume that $2B would be up for grabs among the identity cybersecurity enterprises,” Koenig wrote. Competition in the cybersecurity space is fierce, though, he said, warning that Okta will need to evolve “from a pure-play identity company into a participant in a multilayered security ecosystem.” Shares of Okta slipped less than 1% in premarket trading Thursday.
