Okta (OKTA) exited Q3 with steady demand, strength in Okta Identity Governance attach rates, and interest in its privileged access management product strategy following the takeover of Axiom, Oppenheimer said in a Thursday note.

The company is set to release Q3 results on Dec. 2.

The brokerage said it sees potential for around 100 basis-point upside to Q3 consensus revenue estimates. As H2 subscription growth comps ease significantly compared with H1, analysts see a positively biased risk/reward.

For Q4, Oppenheimer said it expects management to raise subscription revenue guidance by about 150 to 200 basis points, citing seasonality, near-term tailwinds from Oktane, and traction from its go-to-market strategy, according to the note.

The brokerage maintained its outperform rating on the stock and price target of $120.

Price: 79.05, Change: -1.04, Percent Change: -1.30