Okta shares jumped Monday after Scotiabank upgraded the identity management company to "Outperform" from "Sector Perform."
The bank also significantly raised its price target on the stock to $165.
The upgrade stems from the view that Okta will benefit from increased enterprise spending related to artificial intelligence.
Scotiabank analysts believe companies will need to modernize identity security to manage AI agents. These agents are becoming a new type of workforce, driving demand for Okta's products.