BMO Capital Markets upgraded Okta to Outperform with a $97 price target, citing confidence that identity management demand will remain strong as companies expand AI agent deployments. The brokerage believes identity and access management tools will become more critical as businesses deploy software agents operating across corporate systems.

BMO analysts expect enterprises to extend existing identity platforms to manage AI agents and automated processes. Many companies are already adopting AI agents but lack governance systems to control them, creating potential demand for identity security tools. Okta's scale, integrations, and established customer relationships give it an advantage over smaller vendors.

The brokerage highlighted Okta Identity Governance as a product with significant growth potential. BMO projects steady subscription revenue growth into fiscal 2027, with minimal AI agent contribution initially. Any agent-related revenue could become more meaningful in fiscal 2028 as adoption increases.