Loop Capital suggests that the generative artificial intelligence boom could positively impact shares of identity security platform Okta. Viewing the identity security market at a pivotal point due to AI initiatives, the firm has initiated coverage on the stock with a buy rating and set a $140 price target, indicating a 24% upside from Friday's close. Analyst Yun Kim noted in a Monday report, "The overall identity security market is approaching mass market adoption driven by the need to secure GenAI deployments, which demand a modern, comprehensive strategy to protect the identities of the workforce, customers, and non-human entities (AI agents and API calls), while managing their access to data and services. " He added, "With Okta possessing the most strategic asset (Auth0) and key customer relationship (OpenAI) in this emerging AI-driven demand wave, we consider Okta potentially the best-positioned vendor in the identity security sector. " This optimistic view comes amid a strong year for the stock, which has surged over 43% in 2025, advanced more than 52% over six months, and nearly 23% in the past month, outperforming the S&P 500.

Kim believes that Okta has overcome many growth obstacles, particularly those related to its user base and security incidents, and anticipates accelerated growth as early as the second half of 2025 despite ongoing macroeconomic uncertainties. "The market remains just one high-profile, AI-related security breach away from a rapid increase in demand for securing AI deployments, especially focusing on protecting non-human identities and API calls, " Kim wrote. "We view Okta as having essentially become the Palo Alto of identity security—a comprehensive solution provider for all identity security needs. " Furthermore, Kim expects strong growth in the coming years that could elevate Okta as "one of the tech industry's bellwethers. " Wall Street sentiment aligns with this view: among 44 analysts covering Okta, 24 rate it a buy or strong buy, while 17 maintain hold ratings, according to LSEG data.