It's been a tough couple of years for Okta (OKTA -0.69%) investors. After enduring the worst downturn in more than a decade, the cybersecurity specialist suffered a high-profile security breach in mid-2023. Growth slowed to a crawl, and confidence waned.

However, Okta's quarterly results have vaulted the company back into Wall Street's good graces, and at least one analyst believes there's much more to come.

A rare double upgrade

In the wake of the company's impressive financial results, Bank of America upgraded the stock to buy from underperform (sell) -- a rare double upgrade, according to The Fly. At the same time, BofA analysts more than doubled their price target on the stock to $135, up from $64. For those keeping score at home, that represents potential upside of 55% compared to Wednesday's closing price -- though the stock was up considerably before trading closed on Thursday.

The analysts cited Okta's strong results, suggesting the company is poised to outperform over the coming year. Furthermore, the analysts believe Okta's guidance was "overly conservative," suggesting there's even more upside than what management's forecast suggests. This could drive Wall Street's estimates higher over the coming 12 months, making it the year of "beat & raise."

The analysts were far from alone in their enthusiasm. Okta earned no fewer than 17 analyst price target increases, with two issuing upgrades.

What the future holds

It's hard to fault their logic, and I believe the analysts are on to something. Okta's management has a history of being conservative with its guidance, and the evidence suggests that the fallout from the company's high-profile data breach appears to have been both minimal and short-lived.

The stock is currently selling for 6 times next year's sales, so there's a bit of growth baked in. However, considering the improving economic outlook and the ongoing need to implement security solutions, Okta stands at the crossroads of a bright future. Despite that opportunity, the stock still trades 63% below its 2021 peak.

Given its progress thus far, I think it's finally time to buy Okta stock.