Okta (OKTA) - Get Report  shares on Tuesday jumped after an industry analyst upgraded the application-access-management firm to buy from neutral, saying recent price declines created an opportunity for investors.

The stock at last check was up nearly 5% to $127.11 after DA Davidson upgraded the San Francisco company to buy from neutral. 

DA Davidson cited expected free cash flow and favorable valuation created by a decline in Okta's stock price in recent months. The shares hit a high of $140.53 a share on July 22.

The drop in Okta's share price offers a "good entry point" for investors, wrote analyst Andrew Nowinski, who lifted  his price target to $135 from $131, according to published reports

Okta's cloud-based platform, over which companies are free to use a variety of vendors, is a plus, with the access-  and identity-management company seeing positive momentum from new products and its customer-identity-use technology, the DA Davidson analyst said.

The company in October rolled out a new slate of products covering security and authentication among other areas. The company also said it partnered with Atlassian (TEAM) - Get Report in a bid to introduce more big enterprise customers to Okta's product suite.

The upgrade at DA Davidson comes on the heels of a downgrade by analysts at Canaccord Genuity.

That firm lowered its Okta rating to hold from buy while cutting its price target to $120 from $145.

Despite the decline from the July high, analyst Richard Davis argued Okta remains "quite expensive on any method that you choose," with the stock having doubled from December 2018.

For the fiscal first half ended July 31, Okta's net loss widened to 83 cents a share from 62 cents in the year-earlier period. Shares outstanding rose 8.1% to 114 million. Revenue climbed 49% to $265.7 million.