This tech stock could become a bellwether as AI use proliferates, Loop Capital says

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This tech stock could become a bellwether as AI use proliferates, Loop Capital says

The generative artificial intelligence ***** could benefit shares of identity security platform Okta , according to Loop Capital. Seeing the identity security market at an inflection point as a result of AI initiatives, the firm initiated coverage on the stock with a buy rating and $140 price target. That reflects 24% upside from Friday’s close. “The overall identity security market is on the verge of a mass market adoption phase driven by the need to secure GenAI deployments, which require a modernized, holistic approach to securing the identities of workforce, customers, and non-human entities (AI agents and API calls) and managing their access to data and services,” wrote analyst Yun Kim in a Monday note. “With Okta having the most strategic asset (Auth0) and the most strategic customer relationship (OpenAI) in this emerging AI-driven demand wave, we believe Okta is perhaps the best-positioned vendor in the identity security market,” he continued. This bullish stance comes amid an already strong year for the stock, having surged more than 43% in 2025. It’s also advanced more than 52% in the last six months and nearly 23% in the past month, outperforming the S & P 500 . OKTA 6M mountain OKTA, 6-month Believing that the company has gotten past many of the headwinds that could hurt growth — especially those related to its user base and security incidents — Kim expects it will see accelerated growth as early as the second half of 2025 even as macroeconomic uncertainty looms over the market. “The market is one high-profile, AI-related security breach away from a sudden surge in demand for securing AI deployments, which will likely focus on securing non-human identities and API calls,” Kim wrote. “We believe Okta has essentially become Palo Alto of identity security as the one-stop shop for all identity security needs.” Kim also sees strong growth for the company in the next few years that could transform it into “one of the tech’s bellwethers.” Most of Wall Street is similarly bullish on Okta. Of the 44 who cover it, 24 rate it a buy or strong buy, LSEG data shows. Another 17 have a hold rating.

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