Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Citizens has reiterated its Market Outperform rating and $27.00 price target on Netskope (NASDAQ:NTSK), highlighting the cybersecurity company’s growth potential in its first quarter as a public company. Currently trading at $22.47, InvestingPro data shows the stock’s RSI suggests overbought territory, with revenue growth forecast at 28% for FY2026.
The research firm views Netskope’s top-line outlook as conservative, creating favorable conditions for potential outperformance if sales representatives ramp faster, exceed bookings assumptions, or if overall capacity expands ahead of plan. The company maintains a moderate debt level with a total debt-to-capital ratio of 7%, though InvestingPro analysis indicates a weak overall financial health score of 1.41.
Citizens points to favorable market dynamics in the Secure Access Service Edge (SASE) and Security Service Edge (SSE) segments, which position Netskope to gain market share supported by its unique network architecture that delivers distinct performance advantages.
The firm notes that 56% of customers cited Netskope’s network architecture as a primary factor in their purchasing decision, according to their customer conversations, while the company’s strong data security capabilities bode well for the AI era.
Netskope currently trades at a calendar year 2026 estimated EV/revenue multiple of 12.7x, while Citizens’ $27 price target assumes a multiple of 15.3x, which the firm believes is warranted given Netskope is outpacing the peer group’s mean growth rate in 2026.
In other recent news, Netskope has garnered significant attention from multiple research firms, all initiating coverage with positive ratings. Baird has given Netskope an Outperform rating, highlighting its cloud-native architecture and expanded infrastructure as key strengths. William Blair also initiated an Outperform rating, noting the company’s potential in a large market expected to reach $149 billion by 2028. Wells Fargo provided an Overweight rating, citing Netskope’s strong growth in annual recurring revenue and profitability margins amid a shift towards Zero Trust security. BTIG rated Netskope as a Buy, recognizing it as a leading vendor in the growing Secure Access Service Edge (SASE) market. Similarly, TD Cowen initiated a Buy rating, emphasizing Netskope’s potential to disrupt a $150 billion market while maintaining over 30% revenue growth in the long term. These recent developments highlight the positive outlook analysts have for Netskope’s market position and growth potential.
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