Netskope stock initiated at Market Outperform by Citizens on SASE growth

Investing.com - Netskope (NASDAQ:NTSK), a cybersecurity firm with a market capitalization of $8.31 billion, received its first analyst coverage on Monday as Citizens initiated research with a Market Outperform rating and a $27.00 price target.

The price target represents approximately 24% upside from Netskope’s Friday closing price of $21.75. According to InvestingPro analysis, the stock appears overvalued at current levels, with additional insights available through InvestingPro’s Fair Value model. The company’s recent initial public offering on September 18, 2025, priced at $19 per share.

Citizens highlighted Netskope’s position as a leading provider of cloud-based Secure Access Service Edge (SASE) and zero trust solutions. The company, which maintains a healthy gross profit margin of 68.86% and generates annual revenue of $615.51 million, delivers unified security, network, and analytics capabilities through its purpose-built NewEdge network.

The cybersecurity firm raised approximately $992.2 million in net proceeds from its September IPO, providing capital for its continued expansion in the growing SASE market.

Netskope shares have declined approximately 5.4% year-to-date as of October 10, underperforming compared to the Russell 3000 index, which has gained approximately 11% during the same period.

In other recent news, Netskope has been the focus of attention following KeyBanc’s initiation of coverage with an Overweight rating and a price target of $27.00. This development is based on Netskope’s position as a beneficiary of trends such as the shift to cloud-delivered, zero-trust architecture and the increasing significance of data security amid AI adoption. Additionally, Netskope announced enhancements to its Universal Zero Trust Network Access (UZTNA) solution. The updates introduce new context-aware device intelligence features, which include Netskope One Private Access and Netskope Device Intelligence. These enhancements aim to provide better visibility into connected devices and enable policy decisions based on device posture, risk, and role. These recent developments highlight Netskope’s ongoing efforts to strengthen its technological offerings in the cybersecurity sector.

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