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Investing.com - Mizuho has initiated coverage on Netskope (NASDAQ:NTSK) with an Outperform rating and a $25.00 price target. The company, currently valued at $8.31 billion, is trading at $21.75, near its 52-week low of $21.00.
The research firm cited Netskope’s "highly scalable and robust SASE platform" that has successfully differentiated the company from competitors in the security space.
Mizuho noted its recent checks on Netskope have been "largely favorable" and indicated the company has a "good likelihood" of delivering "healthy revenue and ARR upside" in upcoming quarters.
The firm identified several growth drivers for Netskope, including "rising demand for cloud-based security and networking technologies, ongoing legacy displacement activity, accelerating sales capacity, further cross-sell and upsell, and AI security."
Mizuho also highlighted Netskope’s significant gross margin expansion and expressed cautious optimism that the company’s "currently subpar profitability will materially improve" in the future.
In other recent news, Netskope has received significant attention from several major investment firms, all initiating coverage with positive ratings. Deutsche Bank has given Netskope a Buy rating, highlighting its leadership in network security for the cloud and artificial intelligence era, with a price target of $25.00. BMO Capital initiated coverage with an Outperform rating, setting a price target of $26.00, and noted a positive outlook on the security sector, emphasizing artificial intelligence as a long-term advantage. Piper Sandler also rated Netskope with an Overweight rating, citing the company’s growth potential and significant margin improvement, with a price target of $28.00. Morgan Stanley provided an Overweight rating, projecting consistent growth of 25-30% for Netskope, driven by opportunities in the secure access service edge (SASE) and AI security markets, with a price target of $27.00. Lastly, JPMorgan initiated coverage with an Overweight rating and a $26.00 price target, recognizing Netskope’s position in high-growth security markets and the increasing demand for next-generation security platforms. These developments reflect a strong consensus among analysts regarding Netskope’s potential in the cybersecurity industry.
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